Asiafruit Magazine - Feb/March 2024 - Fresh Produce India Edition

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SOUTH AFRICAN TABLE GRAPES 2024

Burstingpotentialwith

Fresh Produce India is back in person to spotlight opportunities in one of the world’s most exciting markets for fresh fruit and vegetables

SINCE 1995

India has long been recognised for its massive market potential. Now, there is a genuine sense that it is beginning to deliver

Fresh Produce India returns at right time

We’re delighted to be back in person with Fresh Produce India on 21-22 March in Mumbai. Launched by Fruitnet some 17 years ago, India’s premier business event for fresh fruit and vegetables has long been the annual meeting point for leading players in the local and international trade. Now, we’re back in Mumbai with a brand-new format that maximises business and information opportunities. Fresh Produce India is centred on a non-stop networking expo, paired with a lively programme of talks, interviews and tastings. And there’s so much to discuss and catch up on. India has witnessed enormous change and development since our last in-person edition in 2019. It’s a market that has long been recognised for its massive potential. Now, there is a genuine sense that India is beginning to deliver. Liam O’Callaghan’s in-depth India report (p22-46) captures the sense of purpose in the business. The fruit market is expanding, driven by rapidly evolving domestic production as well as imports. And consumption is shifting with the introduction of new products and varieties. India’s young population provides a receptive consumer market, while social media and healthy eating trends are propelling the trend. India is renowned as a pricesensitive market, but the premium segment displays clear signs of growth – witness the investments key food retailers are now making to cater to the high-end demographic. India’s rapid digitisation is also a driving force, and it is spurring development throughout the supply chain, from new solutions for farmers to the rise of quick commerce. On top of all this, the nation's huge transport infrastructure upgrade, combined with cold chain investments among fresh produce companies, is helping to address the supply chain issues that have long held the industry back. Of course, big challenges remain. We look forward to discussing those, and the potential solutions, as well as exploring the myriad market opportunities, at Fresh Produce India A

John Hey, Editor

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EDITORIAL

editor John Hey

+61 3 9040 1602 john@fruitnet.com

digital editor

Liam O'Callaghan +61 3 9040 1605 liam@fruitnet.com

staff journalist

Bree Caggiati

+61 3 9040 1606 bree@fruitnet.com

china editor

Yuxin Yang +61 3 9040 1604 yuxin@fruitnet.com

DESIGN & PRODUCTION

design manager

Simon Spreckley

+44 20 7501 3713 simon@fruitnet.com

senior designer

Qiong Wu

+61 3 9040 1603 wobo@fruitnet.com

senior designer Mai Luong

+44 20 7501 3713 mai@fruitnet.com

graphic designer

Asma Kapoor

+44 20 7501 3713 asma@fruitnet.com

EVENTS & MARKETING

head of events and marketing

Laura Martín Nuñez

+44 20 7501 3720 laura@fruitnet.com

events executive

Poppy Bowe

+44 20 7501 3719 poppy@fruitnet.com

ADMINISTRATION

finance director

Elvan Gul

+44 20 7501 3711 elvan@fruitnet.com

accounts receivable

Tracey Haines

+44 20 7501 3717 tracey@fruitnet.com

finance manager

Günal Yildiz

+44 20 7501 3714 gunal@fruitnet.com

subscriptions

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ADVERTISING

asia pacific

Kate Riches

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europe & middle east

Artur Wiselka

+44 20 7501 0309 artur@fruitnet.com

china, taiwan & philippines

Jennifer Zhang +86 21 6136 6010 jennifer@fruitnet.com

uk, ireland, belgium, greece, turkey & south-east europe

Giorgio Mancino

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Jeff Long +1 805 966 0815 jeff@fruitnet.com

south africa

Fred Meintjes +27 28 754 1418 fredmeintjes@fruitnet.com

italy

Giordano Giardi +39 059 786 3839 giordano@fruitnet.com

MANAGEMENT

commercial director

Ulrike Niggemann

+49 211 99 10 425 ulrike@fruitnet.com

managing director

Chris White +44 20 7501 3710 chris@fruitnet.com

CONTRIBUTORS

Jeff Long asiafruit

Jeff provides an update on the Washington apple and Northwest pear deals. With apple production bouncing back this year, the industry is seeing a recovery in exports. apples & pears–p48-49

Mike Knowles fruitnet

Mike talks to agritech firm Innoterra about the potential solution it has found to one of the banana industry's biggest challenges as well as its new method of crop protection. dispatches–p74-75

Fred Meintjes fruitnet

Fred has prepared Fresh Focus South African Table Grapes 2024, which looks at how the industry's push into Asia is being fuelled by a strong crop and proprietary varieties. rsa table grapes–p53

Colin Fain agronometrics

Market analyst Colin speaks to key players in China's blueberry industry to find out what the future holds for its rapidly expanding production, and what challenges lie ahead dispatches–p76-77

BRIEFINGS

Unifrutti Group acquires Verfrut

Unifrutti has acquired South American grower-exporter Verfrut as part of its strategy to build a globally diversified premium fruit platform.

Verfrut is a leading supplier of fresh fruit with over 7,500ha of production in Chile and Peru. It exports more than 15m cartons of

table grapes, cherries, stonefruit, apples, blueberries and other products each year.

Unifrutti said the deal marks an important step in expanding its integrated and sustainable global multi-fruit platform.

It gives the group a major presence in Chile and extends its

Salix Fruits opens Singapore office

Salix Fruits has opened its newest office in Singapore, enhancing its presence in Asia. Sales manager Javier Orti said: “Having a local office is the most effective way to stay close to our customers in the Asian markets and unleash our full potential in this region”. The company said a local presence will enable it to address customer requirements promptly and efficiently as Singapore’s strategic location as a regional hub allows quick access to key markets. The Singapore office will be headed by Raed Kazi, who Salix said has a proven track record as a country manager in India and prior experience in Latin America.

reach into Peru, a key hub in the fresh produce sector.

Completion of the acquisition is subject to satisfaction of closing conditions, including regulatory approvals. Once completed, Unifrutti will maintain Verfrut’s global operations, ensuring business continuity.

“This expansion not only enhances our current operations but also paves the way for future growth, as we aim to become the preeminent and most sustainably driven global multi-fruit company, setting new standards in the industry,” said Mohamed Elsarky, group CEO of Unifrutti.

Romano Vercellino, founder and president of Verfrut, added: “After many years of hard work together with our great team, we look forward to the next stage of our successful journey”.

Twenty Degrees launch

Apple & Pear Australia (Apal) has announced its latest venture, Twenty Degrees, a new commercial entity partnering with clients to transform their produce IP into global fresh produce brands. The move will see Apal’s strengths in licensing and IP management integrate with the expertise of Coregeo, Apal’s whollyowned UK subsidiary responsible for marketing Pink Lady and other fresh produce brands. Phil Turnbull, group CEO, said: “This new entity will provide a wonderful opportunity for our international teams and existing clients to work together to build global FMCG brands, delivering enhanced value to partners around the world”.

Call your citrus sales representative at 661.778.1458 or email Amanda.Meneses@wonderful.com

ASIA FRUIT LOGISTICA back bigger and better

Asia’s premier fresh fruit and vegetable trade show returns to AsiaWorld-Expo in Hong Kong on 4-6 September 2024.

ASIA FRUIT LOGISTICA takes place on 4-6 September 2024 at AsiaWorld-Expo, bringing together leading players from across the global fresh fruit and vegetable business and throughout the value chain. It is held together with ASIAFRUIT CONGRESS, Asia’s longestrunning fresh produce business conference, where expert speakers share high-level insights on the key topics and trends in the trade.

ASIA FRUIT LOGISTICA made a highly impressive return to Hong Kong in 2023, as record visitor numbers contributed to excellent business meetings and outcomes for exhibitors at the sell-out show. More than 13,000 trade visitors from over 70 different countries attended ASIA FRUIT LOGISTICA 2023 to meet and do business with over 700 exhibitors from some 43 countries and regions.

“It was great to be back at full scale with ASIA FRUIT LOGISTICA in 2023,” said David Axiotis, Managing Director of Global Produce Events, the organiser of ASIA FRUIT LOGISTICA.

“ With the huge success of the event and the positive feedback from exhibitors and visitors,

platform for Asia’s fresh produce business at ASIA FRUIT LOGISTICA 2024.”

Further increasing its footprint across the region, ASIA FRUIT LOGISTICA is launching a series of content-backed regional networking events, the AFL Business Meet-Ups. The MeetUps will take place in key markets across Asia to connect with leading players and build momentum for the show’s return to Hong Kong

on 4-6 September

Save the dates below:

• Indonesia Station: Jakarta, 27 February 2024

• India Station: Mumbai, 21 -22 March 2024

• Thailand Station: Bangkok, 3 April 2024

• China Station: Shanghai, 27-28 May 2024

“ASIA FRUIT LOGISTICA is delighted to introduce the Meet-Ups to bring existing and future partners together and deepen our connections in these key markets,” said Axiotis.

“By engaging directly with these diverse markets, we believe we can create even more opportunities and value for all ASIA FRUIT LOGISTICA visitors and exhibitors.”

Exhibitors can register online to book their stand at ASIA FRUIT LOGISTICA 2024. Applications received by 29 February 2024 are

For exhibiting / Business Meet-Ups enquiries, feel free to contact us at info@gp-events.com.

Please visit us in Booth No. 16

Asia Fruit Logistica partners with top wholesale markets

Three major markets join forces with Asia Fruit Logistica on new China Business Meet-Up event in Shanghai on 27-28 May, and become official partners to 2024 edition of trade show in Hong Kong.

by John Hey @johnfruitnet

Asia Fruit Logistica has announced a new strategic partnership with three of China’s leading wholesale markets – Guangzhou Jiangnan Market, Shanghai Huizhan Market and Hebei Sunhola Market.

Asia Fruit Logistica and the three market partners signed an official cooperation agreement on 25 January during a signing event at The Peninsula Shanghai Hotel.

The cooperation agreement was signed by David Axiotis, managing director of Global Produce Events, which organises Asia Fruit Logistica; Ye Canjiang, chairman of Guangzhou Jiangnan Agricultural Development Co; Liu Xiongjie, general manager of Shanghai Huizhan Fruit and Vegetable Management Co; and Mi Yalin, chairman of Sunhola Group Gaobeidian Agricultural and Sideline Products Trading Center.

Ye Canjiang hailed the cooperation between Asia Fruit Logistica and the leading wholesale markets as a win-win partnership.

“This direct cooperation between the exhibition and the wholesale markets will play a key role to further grow the industry in China and enable us to create even more business at Asia Fruit Logistica,” he said. “We’re excited to partner with Asia Fruit Logistica to deepen its connections in China while at the same time boosting our presence on the international stage at the ever-expanding trade show in Hong Kong.”

CHINA BUSINESS MEET-UP

Under the agreement, the leading wholesale markets are partnering with Asia Fruit Logistica on the launch of its China Business MeetUp event in Shanghai on 27-28 May 2024. The event, which takes place at Shanghai World Expo Exhibition & Convention Center, is the final station on Asia Fruit Logistica’s new Asia roadshow of Business Meet-Ups.

Asia Fruit Logistica has launched the series of contentbacked networking events to deepen its connections in key markets across Asia and build

even greater momentum for the show’s return to Hong Kong on 4-6 September 2024.

The Business Meet-Up series kicks off in Jakarta, Indonesia on 27 February. The roadshow then heads to Mumbai, India, where Asia Fruit Logistica is the Official Partner of Fresh Produce India on 21-22 March, organised by Fruitnet. Thailand is the next stop, with a Business Meet-Up in Bangkok to be held on 3 April.

Asia Fruit Logistica’s China Business Meet-Up on 27-28 May marks the culmination of the roadshow and the largest-scale event in the series. The Business

Asia Fruit Logistica Business Meet-Ups

INDIA

Mumbai, 21-22 March

INDONESIA

Jakarta, 27 February

Meet-Up in Shanghai brings together leading buyers and suppliers from across the industry to network and explore in-depth the trends and opportunities in the fast-expanding China market.

The two-day event includes an information-packed programme of expert talks and discussions organised by Asia Fruit Logistica’s

“Together these three markets cover the entire China market, from the south through central to north China”

knowledge partner and leading business conference organiser, Asiafruit Magazine. It also features a B2B expo and various business networking formats, including a large-scale networking dinner to be held on the evening of 27 May.

BIGGER WHOLESALE PRESENCE AT ASIA FRUIT LOGISTICA

As part of the cooperation agreement, the three leading wholesale markets were also announced as the Official Wholesale Market Partners to Asia Fruit Logistica 2024. The market partners will lead an extensive delegation of exhibitors and buyers to attend and do business at Asia’s

CHINA

Shanghai, 27-28 May

THAILAND

Bangkok, 3 April

premier fresh produce trade show on 4-6 September in Hong Kong.

“Asia Fruit Logistica is delighted to form this landmark partnership with these three leading wholesale markets – Guangzhou Jiangnan, Shanghai Huizhan and Hebei Sunhola,” said Axiotis. “Together, these three markets cover the entire China market, from the south through central to north China.

“Partnerships like this are key for Asia Fruit Logistica as the leading continental trade show as we deepen our connections and widen our reach across Asia. It’s a combination that makes a lot of sense: our overall continental business platform each September in Hong Kong together with local in-depth activities with strategic partners in key markets such as China.” A

OPPOSITE—Pictured (l-r): Mi Yalin of Hebei Sunhola Market; Liu Xiongjie of Shanghai Huizhan Market; David Axiotis of Global Produce Events; and Guangzhou Jiangnan’s Ye Canjiang

ABOVE TOP—The three wholesale markets are joining forces with Asia Fruit Logistica on the launch of its China Business Meet-Up event

ABOVE BOTTOM—China is the largest single-exhibiting country at Asia Fruit Logistica

Bloom Fresh to license proprietary varieties in China

Breeder to support licensees and act against nurseries and growers who illegitimately use proprietary varieties and trademarks.

by Liam O’Callaghan @liamfruitnet

Bloom Fresh International has announced it will license its protected plant varieties to Chinese growers, providing ongoing support for their success. In support of this move, Bloom Fresh says it will also take legal action against nurseries and growers who illegitimately use its proprietary varieties and trademarks.

The announcement follows the leading fruit breeder’s string of successful enforcement cases in Yunnan, Jiangsu, Shaanxi, and Guangdong. Bloom Fresh says the results were significant for both the company’s rights and the rights of its Chinese licensees and consumers.

“Infringers create unfair competition for Bloom Fresh licensees, who pay for rights, while infringers illicitly gain advantages through stolen intellectual property,” the company notes.

“Poor-quality infringing fruit negatively affects the market for high-quality, licensed fruit, as infringers do not receive authorised plant material or the benefit of Bloom Fresh’s technical support and quality assurance systems. Infringing fruit also deceives consumers, as the quality does not align with Bloom Fresh’s specifications for licensed fruit.”

Chief executive Kenneth Avery says Bloom Fresh wants to improve the market for all involved.

“Bloom Fresh aims to establish a win-win-win environment for itself, its licensees, and local communities. Creating such an environment relies on a healthy market that protects plant breeder rights and encourages the development of robust new varieties,” says Avery.

“Despite being a long and challenging process, Bloom Fresh is committed to supporting the industry in fostering a positive and healthy intellectual property environment.”

The breeder has secured plant variety rights for 16 table grape varietals and registered trademarks for some of its bestknown offerings such as Cotton Candy, Sweet Sapphire, and Sweet Globe.

Bloom Fresh says it has received support from Chinese authorities, including the Local Agriculture and Rural Affairs Bureau and Administration for Market Regulation in its efforts to enforce intellectual property rights and it anticipates further cooperation with local authorities, communities, and licensees to protect its intellectual property. A

TOP—Bloom Fresh won a series of successful IP infringement cases including one for Sweet Sapphire in Yunnan ABOVE—Chinese growers will be provided ongoing support from Bloom Fresh

Del Monte launches red-shelled pineapple

Rubyglow unveiled in China in time for Chinese New Year, as part of the company’s debut in the market.

by Carl Collen @carlfruitnet

Fresh Del Monte Produce has announced the launch of its latest innovation, the Rubyglow pineapple, a red-shelled variety.

According to the company, Rubyglow has a red outer skin, bright yellow flesh, and a “new, sweet flavour similar to Del Monte pineapples.”

The Rubyglow pineapple has been launched in China, in time for Chinese New Year as part of the company’s grand debut in the Chinese market, while a waitlist is

available for consumers in other countries.

“We are proud to unveil our latest pineapple innovation to the world, the Rubyglow pineapple,” says Mohammad Abu-Ghazaleh, chairman and chief executive of Fresh Del Monte.

“Our scientists continue to elevate the bar by creating new pineapple varieties, with varied tastes and colours, that cater to more and more consumers worldwide.”

With around 5,000 pineapples

available worldwide in 2024 and 3,000 in 2025, the pineapple’s rarity and limited inventory make Rubyglow a ”highly coveted item”, Del Monte notes.

This holds particularly true in the Chinese market, where consumers wield significant spending power and value luxury novelty items.

“We believe that the Rubyglow pineapple is the perfect product to build our market presence in China,” Abu-Ghazaleh says.

Grown in Costa Rica, the Rubyglow pineapple has been in development for more than 15 years and has a registered plant patent in the US.

According to Del Monte, Rubyglow is a cross between a traditional pineapple and a Morada pineapple – which is typically inedible – making the Rubyglow pineapple a hybrid fruit produced through traditional crossbreeding techniques.

Rubyglow pineapples are naturally ripened in Costa Rica on the plant and sold crownless.

“Fresh Del Monte has been leading pineapple innovation since the 1990s with the debut of the Del Monte Gold Extra Sweet pineapple, the first of its kind,” the group adds. “The pineapple has a golden colour and, at that time, was much sweeter than any other pineapple on the market.

“Since then, the company’s robust pineapple programme has released the Pinkglow pineapple, the Honeyglow pineapple, the Del Monte Zero pineapple, and now the Rubyglow pineapple.” A

LEFT—Rubyglow has a red outer skin and bright yellow flesh

Dan Mathieson to leave Zespri

Mathieson ends 21-year stint at Zespri to join berry giant Driscoll’s.

by Carl Collen @carlfruitnet

Zespri has announced its chief executive Dan Mathieson is to leave the kiwifruit leader and take up a new position as president of the Americas for global berry company Driscoll’s.

Mathieson has been at Zespri for 21 years, almost seven of those

as chief executive, and will remain at the New Zealand-based group to oversee the 2024 harvest and start of the sales season and until a new chief executive is appointed.

Zespri chairman Bruce Cameron said Mathieson leaves as “a worldclass CEO”, who has helped turn Zespri into a leading sales and

marketing company and with the industry well positioned to continue to succeed.

“Under Dan’s exceptional leadership Zespri grew sales from almost NZ$2.3bn in 2016/17 to a peak just over NZ$4bn in 2021/22 prior to the Covid-19 pandemic, with that growth set to continue in the coming years,” said Cameron.

“Through that time, he demonstrated his ability to bring talented people together, to set and execute strategy and ultimately to deliver great outcomes for the industry.”

Looking ahead, Cameron remains excited for the future of Zespri and its team. “[I] know we have the right people to continue to create value for our growers and partners and we know Dan will have great success in his new role,” he said.

Mathieson said it was a “difficult decision” to leave, but he is confident the industry is well positioned and is excited by the personal challenge ahead.

“I’m so passionate about this industry,” he said. “It’s filled with incredible, deeply committed people providing a world-class product and its future is so bright.”

As the industry continues to address the quality challenges imposed by Covid restrictions, Mathieson noted the positive results from Zespri this season.

“We know demand is growing strongly,” he said. “And with what has so far been a good growing season, we’re focused on delivering a large, great-tasting and high-quality crop to our customers and consumers and delivering great value back to our growers and partners.”

With this in mind, Mathieson believes the Zespri team will continue to achieve success in the sector.

“There will be new challenges ahead, but with an outstanding team of people, a clear strategy, and strong investment in innovation, I know Zespri will continue to be an increasingly strong force in the healthy food space.”

Zespri said its board will carry out an executive search for Mathieson’s replacement to “take Zespri and the industry forward.” A

LEFT—Zespri chief executive Dan Mathieson is leaving to take up a new position as president of the Americas at Driscoll’s

OBITUARY

Montague has announced the passing of its founder, William (Bill) Montague on 6 February, aged 97. Bill Montague founded the Australian company in 1948, planting its first orchard in Narre Warren North, Victoria in 1950 and supplying fruit to hospitals in and around Melbourne “Bill had an unwavering passion for quality fruit production,” the company said.”He will be dearly missed.”

APPOINTMENTS

Salix Fruits has made two key appointments to its leadership teams in Chile and Egypt.

Pascuala Vergara Sabaini becomes country manager for Chile, while Haydy Shahin has been named country manager for Egypt. Both executives have extensive experience in the fruit industry. Salix Fruits said both appointments emphasised its dedication to diversity and equal opportunities in top leadership.

The Australian Fresh Produce Alliance (AFPA) has elected Gavin Scurr, managing director of Piñata Farms, as AFPA chair for the 2024 term. With over 30 years of experience in the fresh produce industry, Scurr (pictured) will take over the role from Scott Montague. “I am looking forward to continuing to lead the AFPA’s agenda in improving outcomes for the industry,” he said.

Trade reacts to loss of a “legend”

The fresh produce trade has reacted with shock and sadness to the news that Heath Wilkins, founder and managing director of New Zealand cooperative Golden Bay Fruit, has died unexpectedly at the age of 54. Wilkins (pictured) started Golden Bay Fruit following the deregulation of New Zealand’s apple and pear industry in 2000.

From that moment on, and with support from other apple-producing families, Wilkins managed to grow the Golden Bay brand and to build an impressive export business – not just to traditional destinations in Europe, but also in emerging Asian and Middle

Eastern markets.

In April 2022, the company refreshed its brand to underline the spirit of partnership and empowerment among growers, something that remained at its core during those first two decades.

“Heath’s loss is deeply felt across Golden Bay Fruit, the industry and the community, affecting us not only as a dedicated leader but also as a close friend and colleague,” the company said in a statement.

“Our thoughts and heartfelt condolences go out to his wife Lisa, his kids Tasmyn, Sydnee and Connor, and his entire family during this incredibly difficult time. At Golden Bay Fruit, we are a close-knit family, and now, more than ever, we stand united to navigate through this challenging period.”

Ben Bardsley, head of climate tech business Bx, described Wilkins as “a legend of the global fresh produce industry.”

IBO names Mario Steta as new chairman

The International Blueberry Organisation (IBO) has appointed Mario Steta as its new chairman. Steta (pictured), who is operations director for Driscoll’s in EMEA and formerly served as president of Mexican berry association Aneberries, brings extensive experience and knowledge to the role.

“The experience I’ve gained working for one of the leading berry companies makes me feel ready to embrace this role and the significant opportunities and challenges that face the global blueberry industry,” Steta said. “Under the leadership of the outgoing president, Peter McPherson, the IBO has established a strong spirit of industry collaboration, strongly focused on furthering the development and promotion of blueberries worldwide.”

McPherson, formerly general manager of Australian company Costa Group’s berry business, held the IBO president position for eight years.

Industry leaders to speak at Fresh Produce India

Top local and international players to discuss rapid market evolution as India’s premier fresh produce event returns to Mumbai.

by John Hey

@johnfruitnet

Ahigh-profile lineup of leading names in the business is set to speak at Fresh Produce India as the event makes its much-anticipated in-person return on 21-22 March 2024.

Organised by Fruitnet with Official Partner Asia Fruit Logistica, India’s premier event for fresh produce business professionals is back with a brand-new format.

Taking place at Mumbai’s Trident Nariman Point Hotel on 21 March, Fresh Produce India is centred on a non-stop business networking expo, paired with a new-look

OPPOSITE LEFT— Fresh Produce India is back for its first in-person edition since 2019

OPPOSITE RIGHT & TOP LEFT— Speakers (pictured clockwise) include Reliance Retail’s Saurabh Raina, Siddharth Tata of Amazon Fresh, Tarun Arora of IG International and Peter McPherson, consulting advisor to Costa Group

ABOVE LEFT—Fresh Produce India is centred on a non-stop business networking expo

content programme.

With a packed one-day programme of talks, presentations, interviews and tastings all taking place in the bustling expo, Fresh Produce India brings together key players from across the local and international business to discuss the big trends and opportunities in India’s fast-moving fresh produce business.

The programme opens with a high-powered panel discussion looking at the major shifts in the Indian market since the last in-person edition of Fresh Produce India took place in 2019. Reliance Retail’s Saurabh Raina, Siddharth Tata of Amazon Fresh, IG International’s Tarun Arora and Sumit Saran of SS Associates share their expert insights on India’s changing consumer, retail and distribution landscape. The discussion touches on a wide range of developments, from large-scale investments in infrastructure to the rise of quick commerce.

Avocados and berries, two fast emerging categories in India, are the focus of the second session.

Multinational avocado supplier Westfalia Fruit is playing a pioneering role to develop the market through its joint venture with Sam Agri, Westfalia Fruit India. The group’s global business development executive Zac Bard is joined by Westfalia Fruit India general manager Ajay TG to talk about India’s journey

in avocados. The pair discuss the impact of the opening of the market to key African supply origins such as Tanzania and Kenya as well as moves to develop domestic production among other topics.

India also recently opened its doors to Australian avocados, and Flora Zhang of Avocados Australia outlines the industry’s plans to develop the market, including an exciting marketing campaign featuring cricket celebrity, Brett Lee.

Turning the spotlight on berries, Yupaa Group’s Ambrish Karvat and Peter McPherson, consulting advisor to Australia’s Costa Group, explain why India is emerging as ‘the next frontier’ for the global berry business. As leading global breeders and marketers move in on the Indian market, they discuss some of the keys to success in developing domestic production ventures, plus they analyse India’s consumer market potential.

India’s fresh fruit and vegetable producers are moving to capitalise on opportunities in their domestic market for branded and premium products. In a session focused on building India’s domestic fresh produce offering, Ajit Bisoi of leading seed company Rijk Zwaan discusses its efforts to develop Snibs, a range of snacking vegetables catering to trends towards healthy snacking.

India’s rapidly developing fruit import market is the focus of the final session at Fresh Produce India. An expert panel featuring leading global brands and suppliers discusses some of the key market trends and opportunities, from efforts to introduce new club apple varieties to building consumption in lower-tier cities.

Speakers include Jitender Lohani, CEO of leading importer DJ Exports, Anton Kruger, CEO of South Africa’s Fresh Produce Exporters’ Forum; Jason Morris, global general manager of Pink Lady; and Laurent de Smedt, head of the pomefruit division at Belgian cooperative BelOrta.

Fresh Produce India’s content programme takes place alongside the bustling business networking expo. The mix of lively sessions in a shared conference and expo area enables delegates to connect with customers, buyers and service providers and tap into a wealth of established expertise and new talent.

Day Two of Fresh Produce India (22 March) offers a programme of organised tours for delegates. The first stop on the tour is IG International’s cold storage facility at the second Mumbai International Cargo Terminal (MICT II). The state-of-the-art facility is strategically located next to Jawaharlal Nehru, just 18km from Nhava Sheva Port. The tour then heads to Vashi wholesale market, before visiting a selection of Mumbai’s leading modern food retail stores. A

India’s evolving market

Fresh shopping and eating habits are driving change in India’s consumer market, and leading importer IG International is adding new capabilities to stay ahead.

by Liam O’Callaghan @liamfruitnet

It’s a positive trajectory for fruit in India, according to Shubha Rawal, IG International’s head of procurement. While the imported fruit market faced a slight downturn in 2023, the overall fruit market in India is expanding, helped by rapidly evolving domestic production.

Rawal says fruit preferences in India have undergone a transformative shift as new fruits and varieties are added to both the domestic and imported offerings.

Apples, India’s top import category, lead the way with increasing consumer income levels and health benefits helping to fuel demand.

“Notably, the market expansion is not confined to urban areas, as the penetration of imported fruits has significantly increased in smaller towns and cities across India, amplifying the overall demand,” says Rawal.

Another driver of growth for the imported fruit market is a convergence of a set of key trends: culinary evolution, social media and healthy eating.

“Fruits that serve as essential ingredients in cuisines have found fertile ground, owing in part to the surge in fine dining establishments and the transformative influence of the internet revolution,” notes Rawal.

“Platforms like Facebook, Instagram, and other social media channels have facilitated

a virtual kitchen space for chefs, enabling them to share and access innovative recipes and cooking techniques. This has contributed significantly to the increased incorporation of exotic fruits into diverse culinary creations.”

The pandemic also acted as an accelerant, fostering home cooking and a focus on healthenhancing and immunityboosting ingredients, and fruit has benefitted.

“Fruits such as berries, cherries, and avocados (are) transitioning into mainstream staples. This change is primarily driven by the country's millennials, a significant portion of whom reside in urban areas,” says Rawal.

“This demographic is wellinformed about the nutritional benefits of these superfoods, and their willingness to adapt their dietary habits and pay premium prices has spurred an ever-growing demand.”

Effectively catering to these consumers is not a simple task in a vibrant and diverse market like India. Rawal says the Indian market presents immense opportunities but success requires a nuanced understanding of its complexity and investment in infrastructure and supply chain, particularly in cold storage and cold chain logistics.

“Successful brands have taken time to understand the intricacies of the Indian market, recognising

the mix of organised and unorganised segments. They often have strategies that cater to both the upscale superstores and the less organised markets in smaller towns,” Rawal says.

“Recognising the diversity within India, successful brands tailor their marketing strategies to different regions. They acknowledge the cultural diversity, preferences, and consumption patterns, allowing them to compete effectively with local and regional varieties.”

Determined to stay at the cutting edge of the market, IG continues to invest across the value chain. It has partnerships with Hortifrut for berries, Engin Tarim for apples and SNFL for grapes, bringing new varieties in for domestic production. Its efforts are further enhanced by controlled environment agriculture, plant biotics, and other modern technological solutions.

IG is also expanding its efforts beyond cultivation, venturing into post-harvest solutions with a focus on circular economy practices including a new strategic partnership with Europe-based perishable logistics service provider Foodcareplus Logistics. A

BELOW—IG International’s head of procurement, Shubha Rawal

Premium momentum for imports

Market for premium imported fruits shows signs of recovery in India as suppliers jostle for opportunity.

by Liam O’Callaghan @liamfruitnet

After a challenging few years for the premium end of the Indian import market, conditions are improving with top-end consumers returning to branded favourites and continuing to explore newer categories.

While this return in demand will be welcomed by some suppliers,

importers note a level of price sensitivity still remains for the majority of the consumer market, particularly in large categories such as apples.

“With the revival of the economy post-Covid, it has helped consumers in first-tier cities to enjoy premium fruits. Still, the majority of consumers in India

remain price conscious due to increasing inflation,” notes Naufil Kalam operations director of CR Fruits International.

“This year saw an increase in the number of customers who were willing to buy high priced premium products like Hass avocados and cherries.”

Prashant Gidwani of Fresh Fruit Alliances says many of the changes in long-standing consumer habits caused by the pandemic remain, and the suppliers that have responded best have seen results.

“The adage ‘availability creates demand’ rings true even today. By bringing in fruits from other countries, India has been able to help its fruit industry grow and give its consumers the best of both worlds. The overall imported fruit market in India over the past 12 months has seen increasing consumption, demand and volumes compared to previous years,” says Gidwani.

“In the past few years countries like Turkey, Iran and Poland have understood and appreciated the market dynamics of India and with their competitive pricing they continue to be the leading suppliers of imported apples in the country.”

GROWTH OPPORTUNITIES

Apples reign supreme when it comes to imported fruits in India however other fruits continue to gain momentum as consumption grows.

Jitender Lohani, chief executive of DJ Exports, notes the progress made by key categories citrus and kiwifruit.

“Kiwifruit remains the second largest category of imports and demand and acceptance of fruit is consistent. Yellow sweet kiwifruit, especially Zespri SunGold, is gaining more acceptance in tier-one cities,” says Lohani.

“In citrus, consumption of Valencia oranges continues to grow, and we also see growth in the consumption of low-seeded mandarins. Australian citrus received a recent tariff reduction and we have seen good growth in volumes.”

Gidwani says overall citrus demand is expanding and Egypt and South Africa are two of the top suppliers benefitting. Supply is shifting in kiwifruit.

“Recent geo-political developments have restrained the Iranian kiwifruit with limited arrivals, creating an opportunity for Greek and Italian kiwifruit to fill the gap,” he explains.

The exponential growth shown by some of the smaller lines such as blueberries, avocados and cherries is also continuing. Lohani says the key to sustaining this success is maintaining consistent effort and product, pointing to suppliers like Zespri,

blueberries from Peru and cherries from Chile.

Gidwani notes cherries and blueberries still only represent a tiny percentage of total imports as high cost and limited shelf-life remain major challenges.

“The avocado, on the other hand, has become a regularly consumed fruit,” he says. “Through Tanzania's opening to our market, Indian consumers have had consistent and price-friendly access almost yearround.”

Kalam says the demand for new varieties of fruit is helping to fuel this growth, but the key to future success does not necessarily lie in the premium end of the market.

“We can see newer varieties of apples entering India. Consumers in first tier cities are open to trying new varieties of fruits to give a change to their taste buds. This has allowed importers to confidently import new varieties and run marketing programmes to support their imports,” he says.

“The question now is, how do

OPPOSITE—Lower cost suppliers dominate the apple market

LEFT—New varieties and brands are helping to grow the fruit import market

DJ Exports expands

DJ Exports continues to invest in infrastructure development, recently completing a new distribution centre. The company has expanded its digital presence, increasing its B2B profile with major online retailers and establishing its own e-commerce start-up Froovella, which offers domestic and imported fruit to consumers in the Delhi NCR. DJ Exports has also partnered with Agrovision to grow blueberries in India, marking its first joint venture in this area.

brands that grow these fruits market their products in India? They already have the rich population as their customers and the poor population of the country cannot be targeted as they won’t be able to afford these.

“The perfect consumers that can stimulate growth in consumption of fruits would be the upper middle class. They constitute »

a major part of the population and are growing significantly. The companies importing and marketing these fruits must appeal to the health needs of the upper middle class.”

ONLINE EMERGENCE

One trend that has maintained momentum on the other side of the pandemic is the growing popularity of e-commerce, particularly the quick commerce segment which offers short delivery times. As the supply chains that support e-commerce platforms continue to develop, so does the viability of fresh produce sales via this channel.

“Consumers increasingly have begun using virtual or online methods of shopping for groceries and fresh produce. Food delivery apps and e-commerce platforms continue to be on the rise and are

here to stay,” says Gidwani.

“At Fresh Fruit Alliances, we continue to invest in new technology and digitalisation to make our suppliers more efficient. Fresh Fruit Alliances with our in-house brand Fruitamins has been reaching consumers from both online and offline channels.”

LOGISTICS DISRUPTION

One current barrier to capturing the opportunities available in India is ongoing logistics disruption, most notably in the Red Sea.

“With (the) Red Sea issue we expect disruptions of supplies from Europe and Egypt which would give impetus to supplies from South Africa, New Zealand and the US,” notes Lohani.

Gidwani says the transit time for vessels coming from Europe to India is extended by 15-20 days as

Brands bolster CR Fruits’ premium offering

CR Fruits International has launched two new fruit brands to differentiate its offering and deliver consumers a premium product. Grapescape is the company’s new premium table grape brand while Dreamberry is a fresh look for GI-certified strawberries grown in Mahabaleshwar.

For Grapescape, CR Fruits collaborates with growers from across the country, providing expertise and the latest technology to ensure a high quality product. The result is fruit that can achieve a premium in domestic and export markets.

“We provide growers with our packaging expertise at our own packhouses where these premium quality grapes are packed in our very own Grapescape brand and made available to consumers via our retail outlet as well as our partnered retail outlets,” says Naufil Kalam, operations director of CR Fruits International.

CR Fruits has also helped growers in Mahabaleshwar access new varieties of strawberries via a partnership with nurseries in Italy.

“We have also provided growers access to new ways of farming which has helped them to increase their yield while reducing their cost. With Dreamberry we aim to distribute Mahabaleshwar strawberries to every corner of the world,” explains Kalam.

In an effort to service consumers directly, CR Fruits has also opened its very first retail outlet in Mangalore. With a focus on fruits and vegetables, the store channels the interior design of major supermarket to give consumers a premium experience.

“We have ensured with our retail outlet that fruit shopping is different from the traditional way. It is something that you could do as a leisure (activity) with families coming together, shopping for premium quality fruits while enjoying fresh pressed juices and culinary fruit-based dishes developed by our in-house chefs,” says Kalam.

“With positive feedback to our first outlet from our customers, we aim to open more outlets, with plans for three outlets in the city of Bangalore already falling into place.”

ships re-route around southern Africa.

“This has seen seafreight rates skyrocket and has immensely affected the supply chain. It’s leaving the market short supplied, resulting in high price levels,” he says. A

South African blueberries eye India

First consignment of South African blueberries could be shipped to India at the start of the next season.

by Fred Meintjes

South Africa’s efforts to gain access to India for blueberries are at an advanced stage. The industry is currently awaiting final feedback from Indian authorities and there are hopes matters will progress during Fresh Produce India held in Mumbai in March.

South Africa has a growing blueberry industry and has recorded substantial production increases in recent years.

“Our 2023 crop has been somewhat below expectations, but our long-term forecast is still for

“We are also in a phase of introducing new varieties which positions us for long-term growth”

considerable growth,” says Brent Walsh, chief executive of Berries ZA. “That is why we are keen to get access to the consumer markets of the East and India is one example.”

South Africa exported just over

22,000 tonnes of blueberries in 2023, short of initial forecasts of 25,000 tonnes.

“We had some difficult conditions during the harvest which slowed down picking and packing. We are also in a phase of introducing new varieties which positions us for long-term growth,” says Walsh,

The lower crop was particularly disappointing given there was strong demand and good prices to be had in traditional markets.

“Our competitors in Peru were also affected and this was reflected in the strong market,” notes Walsh.

There is optimism South Africa will be able to conduct its first shipments to India as the new season picks up steam in July if access is confirmed.

“We can service the Indian market both by air and by sea, with some of our producers in the north of the country being able to ship their fruit from the east coast ports,” says Walsh.

“This is assuming that the final agreements are in place.”

It is not just the South African blueberry industry that has its sights set on India, as securing access for stonefruit is also a priority. Both sectors are eager to meet the requirements of the Indian market according to Walsh.

“We hope that the access for South African stonefruit will be finalised soon and that our blueberry industry can then also move forward. Naturally, we must finalise the final processes of the intended protocols and we are happy that we have responded to everything the Indian authorities have asked of us,” he concludes. A

LEFT—The South African blueberry industry is eager to supply India

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Indian apple market in flux

A short domestic crop, tariff changes and logistics challenges have created a fluid market for apple imports in India.

by Liam O’Callaghan @liamfruitnet

India’s apple import market has been short on stability in recent times as a host of factors influence across the value chain.

At one end, suppliers are contending with logistics disruption and tariff changes. At the other end, while consumers are still eager for apples following an underwhelming domestic season, the increasing cost of living is being felt. The result is a fluid market that is ripe for opportunity for the suppliers that can effectively service it.

Three suppliers currently making the most of their opportunities are Turkey, Poland and Iran, according to Prashant Gidwani of Fresh Fruit Alliances.

“India continues to be one of the biggest markets for apple imports. At the same time, it is also a price sensitive market. Hence Turkey, Poland and Iran remain the leading suppliers of imported apples,” says Gidwani.

DOMESTIC IMPACT

A weather-affected domestic crop saw apple prices rise in 2023 for both local product and imported

fruit that sought to fill the gap, according to Naufil Kalam, operations director of CR Fruits International.

“The apple market went a little aggressive in pricing due to flooding in Himachal which caused a delay and damage to the apple crop of India. This forced Indian consumers to pay a high premium to the roaring imported apple market,” says Kalam.

“The Kashmiri apples also opened at a high premium due to shortage in Himachal apples, this did not help consumers as they still had to pay a premium for apples, but the prices stabilised at the end of the year.”

Jitender Lohani, chief executive of DJ Exports, says the short supply also saw a surge of Afghan apples being imported via land border in North India.

TURKISH GROWTH

Turkey has been able to secure a sizeable market share in the Indian apple market, capitalising as competitors navigated challenges.

“The Turkish Red Delicious apples found a way to increase their market share in India due to

weakness in the supply of Red Delicious apples from Europe. Consumers in India love Turkish Red Delicious apples for their taste and texture as well as attractive price,” notes Kalam.

Aysel Oguz of Turkish exporter Anadolu Etap says Indian consumers have come to gain an appreciation of the Turkish product.

“When we are talking about the place of Turkish apples in the Indian market we can say for sure that for the last couple of years, demand and reputation have (gotten) better and better. Indian consumers like the fact that the fruit is not waxed as well as the sweet taste of the fruit,” says Oguz.

Oguz acknowledges that the increased tariff on US apples provided the impetus for the growth but as the tariff is reduced, she remains optimistic that progress can be maintained.

“In general, Turkish Red Delicious apples from Isparta look very similar to US Washington apples, and after the increase in the tariff, Turkish apples got the market share,” says Oguz.

“This season the crop in the US is quite good and the tariff went down which created a lot of question marks in the heads of exporters as well as the customers. Well now the season has started and is moving on and it looks like Turkish apples are very steady in their spot.”

US RETURN

One of the biggest uncertainties in the market is what kind of market share US apple imports recover now the tariff has been reduced. Kalam says only small volumes of Washington apples entered the Indian market in the initial months following the change.

“It was obviously a lot higher than what entered last year but US apples found it difficult to compete with the Turkish apples, which had gained popularity and market share in India due to low prices and high quality,” he says. “The Turkish Red Delicious apples also enjoyed a better position compared to the European apples since there was very little Red Delicious in Europe. Gala

OPPOSITE TOP—Indian consumers remain fairly price-sensitive when it comes to the apple category

OPPOSITE BELOW—A short domestic crop provided opportunities for imported fruit

LEFT—The removal of a supplementary tariff on US apples is set to shake up the market again

BELOW—Turkey is one of the suppliers that has capitalised on a downturn in US apple imports

from European countries especially struggled with poor quality. This gave an upper hand to Gala from the US and Turkey.”

A new factor set to influence this dynamic is the current logistics disruption in the Red Sea, according to Kalam, as it may present an opening that US exporters can exploit.

“With seafreight costs soaring for European and Turkish companies as their goods have to divert to avoid the Red Sea, they have had to increase their price in turn. This would be a perfect welcome back for US apples to recover the market share lost in previous years,” says Kalam.

“It will be very interesting to see how well US apples will be able to compete with the much fresher apples from Southern Hemisphere suppliers, which include the likes of Chile, South Africa and New Zealand, in the coming months.”

RSA PEARS

India has also been on the radar for South African apple exporters looking for growth, and the situation in the Red Sea may also play into their hands. However, Riaan Ferreira of GF Marketing says it can be a fine balance between opportunity and challenge.

“The Red Sea shipping problems are creating some advantages as those that have fruit get good prices when the shipping is delayed. Then the market drops when all the fruit arrives together,” he says

“Northern Hemisphere apples are still getting to the markets, but the feeling is that there will be less volume, which gives South Africa an advantage when the South African apple season starts. The Red Sea also makes it more complex for countries like Brazil to get their apples to India.” A

South African apple industry has high hopes for Bigbucks

Encouraging signs of growth for Bigbucks and its brand Flash Gala.

by Fred Meintjes

Bigbucks, the wine-red coloured apple, branded as Flash Gala, has made an exciting debut across Asia –especially in India and China –and is likely to be the driving force behind increased sales in the region this year.

South African apple and pear grower, and one of the holders of Bigbucks and Flash Gala Plant Breeder’s Rights (PBR), Anthony Rawbone-Viljoen, says there has been a flurry of interest in both the variety and the brand in India since the fruit was first exported.

“The Far East and India have proven to be shining lights to date. In these markets the overwhelming consumer preference is for sweet and red apples and in this respect Bigbucks and Flash Gala fit the billing perfectly,” says RawboneViljoen.

He says it takes many years to develop brand acceptance, but the initial signs are very encouraging.

According to industry statistics there are now almost 2.5m Bigbucks trees planted in South Africa.

“This equates to around 1,474ha of orchard capacity,” RawboneViljoen says. “In 2023 we saw an increase of 53 per cent in production, despite damage from hail in some regions.”

The rapid growth in the variety has helped to propel the Gala

category into South Africa’s single biggest apple category, overtaking Golden Delicious.

Globally, the Gala category represents over 20 per cent of current plantings, so it is firmly entrenched as an apple of choice among consumers.

“For the 2023 season, in terms of average pricing recorded from one marketer, the price premium achieved between Flash Gala and Bigbucks was around R34 (US$1.79) per carton,” says Rawbone-Viljoen.

“It is early days yet for the variety, and the premium can be expected to grow as the various markets build confidence in the variety and the brand.”

Future price performance will depend on the quality of fruit put into the carton and producers are encouraged not to be tempted to take short cuts. The premium will have to be earned, but if the offering is of a consistently high quality, the industry is confident the reward will be there.

“As volumes of the variety grow, more resources will become available to promote the Flash Gala brand in key target markets around the world,” says Rawbone-Viljoen.

“Given budget constraints, much of the current marketing activity is social media-driven.”

Calla du Toit, chairman of the Flash Gala Association, says growers are reporting a good crop

and volumes are expected to grow rapidly this season.

“This year we are again paying particular attention to the maturity of the fruit to ensure that consumers derive a consistent eating experience,” he says. A

ABOVE TOP—Growers report a strong crop of Bigbucks this season

ABOVE BOTTOM—The Flash Gala brand is gaining recognition in key export markets

Amazon’s Johari certifies freshness

In an exclusive interview with Asiafruit, Amazon’s vice president, machine learning, Rajeev Rastogi explains how technology is revolutionising quality assurance in India.

by Liam O’Callaghan @liamfruitnet

Amazon has developed a shelf monitoring solution called Johari. Can you please provide an overview of what the technology is and how it is used?

Rajeev Rastogi: Amazon’s shelf monitoring solution is a cuttingedge machine learning-powered system designed for farm-to-fridge quality assurance of fresh produce. The solution utilises advanced deep neural networks and rulebased grading to set a new standard in maintaining the quality of fresh produce.

The shelf monitoring solution offers both manual and automated

monitoring capabilities. In the manual monitoring approach, operators use the Johari mobile app to submit images of produce crates taken with their smartphones. The solution assesses the image for quality, detects defects, and applies grading logic to identify items that do not meet quality standards. Operators can then remove the defective produce, updating the app with their actions. The app provides detailed information on defect types, and the entire manual monitoring process takes an average of around six seconds per crate.

For automated monitoring, cameras are installed on top

of produce shelves to capture images at specified intervals. This approach mirrors the manual process, with the solution using the images to assess and identify defects. The automated monitoring solution employs state-of-the-art computer vision models and Wi-Fi-enabled IoT cameras. Two types of models are developed: one for item detection and counting, and another for identifying defect classes in each item.

What produce is it trained to monitor currently, and do you have plans to expand this range?

RR: Currently, the monitoring system is specifically tailored for fruits and vegetables. The AI model has been meticulously trained to recognise and assess the quality, freshness, and overall condition. However, our commitment to innovation and continuous improvement means that we are actively exploring plans to expand the range of products monitored by this advanced system.

As this technology is powered by machine learning (ML), it should improve the longer it is implemented. What kind of improvements do you think we will see to this technology?

RR: As the ML-based approach is implemented over an extended period, its capability to analyse and produce images for defect detection, including cuts, cracks, and pressure damage, will continuously improve. The ML model enables it to refine its assessments with each iteration, resulting in an increasingly accurate and efficient system. The grade and pack machine will reduce grading costs by 78 per cent as compared to manual grading. This in-house capability will provide Amazon Fresh with increased information, flexibility, and control, ultimately establishing a competitive advantage in terms of produce quality.

Where can this technology be deployed? Is it just for retail shelves or are there opportunities to use this in other areas along the supply chain?

RR: Amazon initially introduced the shelf monitoring solution at Amazon Fresh with the primary goal of enhancing the quality of fruits and vegetables delivered to customers. However, the deployment of this technology is not limited to retail shelves; rather, there are plans to expand the deployment of this solution gradually. We will continue to invest in technological advancements, and strengthen our supply chain to seamlessly deliver fresh, quality fruits and vegetables to our customers.

How widespread is it used at the moment in the Indian market and what plans do you have for expansion domestically and internationally?

RR: Currently, shelf monitoring solutions are employed for Amazon Fresh sites. As part of our strategic plans, we are committed to further expanding the deployment of this technology across geographies. Our focus is on investing in continuous technological advancements and fortifying the supply chain to ensure the seamless and timely delivery of fresh, high-quality fruits, and vegetables to our customers.

Can this technology be a key tool in growing online fresh produce sales as it can help give consumers more confidence in the product?

RR: Yes, the shelf monitoring solution holds significant potential as a key tool in boosting online fresh produce sales. As the grocery category continues to be one of our fastest-growing segments, the shelf monitoring solution becomes particularly valuable in addressing the challenge of customers being unable to physically inspect the produce before purchase. By leveraging this technology, we aim to instil greater confidence in consumers regarding the quality of the products they will receive. This becomes crucial as we observe a shifting consumer trend towards purchasing more organic and cleanlabel products across different geographical regions.

What is Amazon Fresh’s footprint now in India and how has it grown recently? What plans do you have for further growth?

RR: Amazon Fresh has established a robust presence in India, aligning

with the rapidly growing online grocery retail market, especially in metropolitan areas and emerging smart cities. The footprint of Amazon Fresh has expanded significantly, covering over 60 cities.

This recent growth reflects the increasing demand for online grocery shopping in India. Amazon Fresh aims to continue this momentum and further expand its reach across the country. The focus is on penetrating deeper into smaller cities to offer our full basket selection of (wet and dry grocery) quality products to a wider consumer base.

How have online fresh fruit and vegetable sales developed for Amazon Fresh? How do you plan to continue to develop this category?

RR: The trajectory of online fresh fruit and vegetable sales for Amazon Fresh has undergone a significant evolution, particularly accelerated by the changes in consumer behaviour during the pandemic. Traditionally, customers shopped for groceries offline, but

the pandemic-induced shift towards online platforms has become a lasting trend.

At Amazon Fresh, our paramount focus is on providing customers with an online shopping experience that feels familiar yet caters to their evolving preferences. We recognise that consumers prioritise quality products, especially when it comes to fresh fruits and vegetables, along with the convenience of delivery slots aligned with their preferred time slots.

One of the recent pan-India studies by LocalCircles revealed that 67 per cent of online grocery shoppers consider quality and value for money as top criteria for purchasing groceries online and over 50 per cent of consumers pre-plan their online grocery purchase and prefer a delivery slot as per their convenience. In response to these insights, we are committed to continuing the growth of online fresh fruit and vegetable sales for Amazon Fresh.

Our strategy involves actively listening to customer feedback and preferences to refine our offerings. This includes providing convenient delivery slots, an unmatched selection of products, and an unwavering commitment to delivering the best quality products to our customers. A

OPPOSITE—Amazon’s vice president, machine learning, Rajeev Rastogi

BELOW—The growth of online fresh fruit and vegetable sales has become a lasting trend post-pandemic

INI Farms signs banana deal with LuLu Group

Agreement establishes direct farm-to-retail partnership which will see Indian Cavendish bananas supplied to stores in the Middle East.

by Liam O’Callaghan @liamfruitnet

INI Farms, part of the AgroStar group, has entered into a Memorandum of Understanding (MoU) with LuLu Group International, establishing a direct farm-to-retail partnership for Indian Cavendish bananas.

The new deal is an extension to a long-term partnership between the two groups – already working on pomegranates and guavas – to bring Indian fruits to the supermarkets and hypermarkets of the LuLu Group in the Middle East.

Purnima Khandelwal, chief executive of INI Farms says, this partnership marked one of the first instances of Indian bananas being directly supplied to a large, reputed global retailer like LuLu Group.

“This MoU is a significant

milestone not just in the journey of INI Farms, but also for banana and guava farmers across the country,” says Khandelwal.

“We are excited about the prospect of directly servicing a highly reputed global retailer like LuLu and ensuring the highest quality of Indian bananas and guavas from our farms to their retail shelves. We are grateful for the faith and trust shown by LuLu Group and excited about the opportunities this collaboration can bring for Indian farmers."

LuLu Group director Salim M A says the MoU is not just a trade deal, it is also about supporting Indian growers.

“LuLu Group International aims to be the pioneer in sustainable

agriculture and set new standards in quality and innovation. We have been working with INI Farms for close to a decade and this MoU further strengthens our collaboration,” he says.

“Together, in collaboration with our farmers and partners we will explore new markets and contribute to the growth of the agriculture sector. This MoU is a milestone and I’m confident that our partnership will be marked by success.”

Under this strategic partnership INI Farms will work with the AgroStar network of farmers in Maharashtra and Andhra Pradesh to deliver yearround supply and meet the high quality standards required by an international retail like LuLu Group and its consumers.

Co-founder and chief executive of AgroStar Shardul Sheth says the partnership highlights the group’s ability to serve Indian farmers across the value chain and fulfil the expectations of customers across the world.

"INI Farms has gone from strength to strength over the past few years. Last year, we witnessed landmark developments like the first Indian consignment of our ‘Kimaye’ branded bananas being shipped to the Netherlands and becoming a pioneer in the industry to successfully ship great quality pomegranates to the US among other achievements,” says Sheth.

“Our collaboration with LuLu Group International is yet another important milestone and a testament to our capability to be able to supply fruit and vegetable products of global quality standards to marquee retailers and end customers around the globe and our passion to continue to build deep and meaningful relationships servicing the seed to market linkage needs of our farmers.” A

ABOVE—INI Farms signs the MoU with LuLu Group BELOW—The deal marks one of the first instances of Indian bananas being supplied to a large global retailer

New funding drives Vegrow expansion

Fresh produce B2B marketplace will use new capital to drive its reach across India and fortify its global network.

by Bree Caggiati @breefruitnet

Vegrow has secured US$46m in a Series C funding round led by GIC, Singapore’s sovereign wealth fund, with significant participation from existing investor Prosus Ventures, and continued support from Matrix Partners India, Elevation Capital, and Lightspeed.

Vegrow established its presence in the Indian fruit sector by aggregating multiple channels (wholesalers/semi-wholesalers, modern trade and general trade) and using technology to match supply and demand.

Through its multi-channel demand stack, the company aims

to maximise grower income by accurately grading produce and efficiently matching it with the most suitable demand channel. According to Vegrow, this creates a virtuous cycle, attracting more growers through competitive pricing as well as more buyers, who seek consistency in both price and quality.

“Vegrow is the fastest agritech company to build a national presence, having done this within three years of its inception. Typically, it takes double the time to achieve this scale of operations,” says Vegrow co-founder, Praneeth Kumar.

LEFT—Vegrow aggregrates multiple distribution channels and uses technology to match supply and demand

Co-founder Mrudhukar Batchu says over the past year, Vegrow has experienced a fivefold increase in revenue and achieved operational profitability.

“Through the extensive utilisation of data and technology, we provide valuable insights and optimise supply chain challenges, such as reducing perishable inventory wastage to only one-fourth of industry average, and consistently achieving industry-leading profit margins,” Batchu says.

Vegrow is the first agritech and B2B investment in India for GIC, and it says the founders’ extensive experience in the sector and demonstrated execution differentiated Vegrow.

Vegrow co-founder Shobhit Jain adds the company is also committed to making a positive impact for both farmers and the planet.

“Our ambition is to establish ourselves as the undisputed leader in every fruit category, ensuring transparency and higher income for farmers, while also reducing carbon consumption through supply chain optimisation,” says Jain.

“We are excited to work with GIC, whose long-term vision and reputed global network can contribute to building a company that will last generations. We are also grateful for the continued support from our existing investors. As we focus on long-term institutional development and enhancing value for all stakeholders, we are excited for what the future holds.”

As the first backers of Vegrow, Matrix Partners India, says it has witnessed the company's evolution from concept to category leadership. Matrix Partners is optimistic about Vegrow scaling to greater heights following a strategy that has seen the company not only establish a sustainable economic model, but increase income for every participant in the supply chain. A

Westfalia brings Australian avocados into India

Leading marketer welcomes first commercial shipment following opening of market to Australian Hass avocados.

by Bree Caggiati @breefruitnet

India approved market access for Australian Hass avocados in November 2023, subject to Australia completing ten successful trial shipments.

“Sea shipments from Western Australia will play a key role in fulfilling the growing demand for avocados”

end of January 2024.

Following these trial shipments, multinational avocado growersupplier Westfalia Fruit confirmed its first commercial seafreight shipment of Australian avocados landed successfully in India at the

Westfalia Fruit is working with Western Australia’s Delroy Orchards to bring the fruit into the Indian market. According to Westfalia, Western Australia fits well into India’s avocado imports calendar with fruit available from

November to March, complementing African import programmes from April to November.

Westfalia Fruit commenced commercial imports and distribution of avocados through its Indian subsidiary in 2022 and has since seen its first commercial harvest of Indian-grown Hass avocados. The company also works closely with major national retail chains and e-commerce companies to develop awareness for avocados across the country. These marketing efforts include an avocado ripening centre which allows the company to tackle ripeness challenges by supplying avocados to consumers that are ready to eat.

Zac Bard, Westfalia Fruit group business development executive, says Westfalia Fruit has established itself as the market leader in India and the country’s largest importer of avocados.

Ajay TG, general manager at Westfalia Fruit India, adds that Australian avocados will play a key part in offering year-round availability to the Indian market.

“Westfalia Fruit has well established working relations with all major retailers and wholesalers across the country,” he says.

“Sea shipments from Western Australia will play a key role in fulfilling the growing demand for avocados over the next three months.”

Looking ahead, Westfalia Fruit is working to continue market expansion across Asia in the latter half of the decade as it caps off a year of growth across India, China and Japan. A

LEFT—Westfalia is working with Delroy Orchards

South African avocados close in on India access

Expanded access into Asia bodes well for South African avocado export growth.

by Fred Meintjes

Following recent announcements granting South African avocados access to in China and Japan, India has taken clear steps to follow suit. Indian authorities have published a notice with the World Trade Organisation indicating their intention to extend access to South Africa, with comments set to close in March. Meanwhile, South African growers and exporters are preparing their registrations for the Indian market and Subtrop, South Africa’s subtropical growers’ association, says it is hopeful the first shipments will start in April.

Subtrop chief executive Derek Donkin welcomes these latest developments, saying

the breakthrough in Japan is a significant step for the South African industry.

“Widening access to Eastern markets allows for market diversification, providing opportunities other than the EU and UK, which currently absorb 95 per cent of South African avocado exports. These traditional markets, however, will remain important markets for South Africa,” Donkin says.

“Tapping into growing markets in the Far East will allow for further expansion in the South African avocado industry, which has grown at a rate of 800ha to 1,000ha per annum over the last five years. (With) current plantings

standing at 20,000ha, access to China and Japan has come at a critical time when these new plantings are coming into production.”

Early indications for the year reflect this growth, with forecasts widely predicting an increase on last year’s export crop which will augur well for the expansion into Asia.

The first shipments to Japan are still on the cards for June or July when the industry expects to harvest Hass varieties which are more suitable for the shipping protocol.

Westfalia Fruit has previously stated it anticipates the first shipment of fruit to arrive in southern Chinese ports at the end of March, reaffirming it sees the opening of the Chinese market to South African avocados as an exciting development.

“South Africa is strategically well positioned to supply the growing Chinese market with Hass, with transit times from Durban ports to southern ports in China, such as Hong Kong and Shanghai, being only 18-22 days,” the company says.

Clive Garret, marketing executive at avocado grower-exporter ZZ2 Afrikaido, says the Hass crop is being given special attention for shipments to Asia.

“We will also do trial shipments with Maluma to see if our partners can ripen them on arrival,” he adds.

According to Garret, ZZ2 has a close association with Mission Produce in the US and Mr Avocado in China.

“Both are avocado experts, and we hope to build our business with them in future,” Garret says.

“The team from Mr Avocado has already been here in our orchards and we are all keen to start.” A

LEFT—South African growers are preparing to enter the Indian market

US apples rebound while pears remain steady

Washington apples produce bumper crop after ideal preseason conditions, and exports recover in turn.

by Jeff Long

Pacific Northwest apple and pear growers have welcomed ideal growing conditions this season, with the apple industry reporting the best crop in a number of years.

APPLES BOUNCE BACK

For the previous three seasons, annual production of Washington apples has only been moderate at best, averaging around 116m cartons (18kg), including the meagre 104.3m cartons last year. This was hardly representative of the industry’s potential, given the steady conversion of its orchards from traditional to high-yielding varietals over the last couple of decades. It’s no shock then to see the well-rested trees that thrived under nearly ideal pre-season growing conditions respond with a bumper crop currently estimated at just under 140m cartons. If the prognostication holds, the 2023 yield will trail only the record 2014 season which produced 142m cartons.

“This year’s crop is up in volume from the original 134m (cartons) but that could slip back or even increase somewhat as we get deeper into the season,” says Steve Reinholt of CMI Orchards.

“Although projections are still for about 140m cartons, just how much fruit ends up getting packed is the question,” his CMI colleague

Marc Pflugrath agrees. “It depends on the variety and the grade as well as condition once it comes out of controlled atmosphere (CA) storage.”

Fruit quality does not seem to be an issue this season, however.

“The strongest-quality fruit always goes into CA anyway,” says Pflugrath.

Large-volume seasons often result in depressed prices and so far that has been the case, as reports have FOBs down across all varieties including the popular Honeycrisp. Adding to the industry’s profitability woes are rising costs of production including labour, fertiliser, energy and transportation.

“It will be difficult for growers to make any money this year,” predicts Randy Eckert of River Valley Fruit, adding he believes the market for Washington apples has fundamentally changed in recent years.

“There has been a flood of new proprietaries introduced to the point where I feel the consumer is getting confused. At the very least, these new varietals are cannibalising demand for some of the major ones such as Gala and Fuji,” Eckert says.

Exports have traditionally been relied on to divert significant volume from the domestic supply market. However, with trade wars,

the economic downturn from the pandemic and lowercost fruit from competing sources, international demand for Washington apples has been in decline.

The relatively light crops of recent seasons had eased supply pressures, but this was never a longterm solution. Fortunately, international sales have rebounded alongside supply increases this year.

“Exports have actually been pretty good so far,” says Reinholt. “India is up substantially thanks to the retaliatory duty getting lifted, Vietnam is churning right along, and Fujis to Taiwan have been steady. However, the China market continues to disappoint; we’ve shipped some large Red Delicious there, but the Lunar New Year demand just isn’t what it used to be.”

Lower production out of Europe, as well as maritime disruptions in the Red Sea, have also helped rejuvenate Washington’s international sales. Yet approximately 60 per cent of the crop remained in cold storage across the state as mid-season approached – a harbinger of challenges that may confront the Washington industry in the future.

“The industry had a good run of profitability for many years, and we were able to move a lot of fruit during large-volume seasons, but the market fundamentals have changed,” says Eckert. “We can still handle seasons of 110m-120m cartons if the quality is there. Much more than that is questionable.”

PEAR STABILITY

Pear volume from the Pacific Northwest continues to hover between 15m and 16m cartons (20kg) annually with no real prospects of increasing. This is largely because the global pear industry has yet to come up with new, high-yielding varieties as has been the case with apples.

Prior to this season’s harvest, the Pear Bureau Northwest (PBNW) industry association estimated the 2023 crop at 15.2m cartons but pointed out that

volume could increase, depending on fruit sizing.

“Demand for pears has been solid to date,” says Reinholt. “There have been a few condition issues with some varieties but nothing really significant. The fruit from Oregon has been particularly nice.”

US pear exports to AsiaPacific markets have decreased in recent seasons following logistics disruptions inflicted by the Covid-

CENTRE—Ideal pre-season conditions have led to the highest volumes of Washington apples in almost a decade LEFT—Exports are recovering although profitability challenges remain

PHOTOS—Washington Apple Commission

19 pandemic. With surging demand from Mexico, Canada and Latin America, the PBNW’s board recently directed that its international promotions be targeted to markets closer to home. So far this season, 95 per cent of the Northwest’s exports have remained within the Western Hemisphere.

However, exports to the Middle East and AsiaPacific Rim are up substantially compared to last season. Leading markets by volume so far include: the UAE (up 151 per cent), Taiwan (up 128 per cent), Israel (up 12 per cent), New Zealand (up 363 per cent) and India (up 675 per cent). A

Continued success for Poppi

Production of early season New Zealand variety recovers from Cyclone Gabrielle to meet growing demand.

by Bree Caggiati

@breefruitnet

T&G Global expects a high-quality crop of Poppi this season as production of its early season variety rebounds from the effects of last year’s Cyclone Gabrielle.

“In 2023, Cyclone Gabrielle struck two weeks into the harvest of Poppi, impacting some of our volumes,” says T&G’s head of apple supply, Wendy Burton.

“It’s therefore great to see this year’s Poppi progressing well – and it looks to be an excellent quality crop.”

Favourable weather conditions throughout 2023 have helped the T&G orchards recover from the setback and are set to improve overall fruit quality including colour and size.

“The weather has provided more favourable growing conditions with hot sunny days and cool

nights, resulting in the fruit developing great colour and size,” Burton says.

The Poppi harvest will kick off the New Zealand apple season entering both local and international markets.

“Poppi is a sweet flavoured, medium sized Jugala apple with a rich red colour. It is the first variety to ripen on T&G’s and our independent growers’ Tairāwhiti Gisborne and Hawke’s Bay trees and will be some of the first new season New Zealand apples entering the domestic and Asian markets,” Burton says.

“In New Zealand, our early apple varieties including Poppi and Royal Gala commence the season’s harvest, followed quickly by Pacific Queen and our premium Jazz and Envy brands. The first apples are due to be picked around 7 February and will be exported shortly after, arriving in Asia in early March.”

Poppi is still a relatively new variety for T&G, but with demand growing both domestically and in Asia, Burton says T&G is putting

in measures to meet consumer interest.

“It’s been three years since we launched Poppi, and its warm reception and success has grown every season since,” she says.

Burton says Poppi production is still maturing which will help increase yields over the next few seasons.

“We plan for our Poppi volumes to continue to increase yearon-year helping us meet strong consumer demand for our delicious early season Poppi, especially in China,” she says.

This season will also be the first full season T&G uses its automated Hawke’s Bay packhouse which utilises AI and robotic fruit packers to efficiently sort and pack fruit.

“[It] not only ensures we have the capacity to handle increasing volumes of fruit but that the quality of our fruit is prioritised by utilising some of the world’s leading AI, defect sorting, soft fruit handling, and robotic fruit packers and palletiser technology,” Burton says. A

LEFT—Poppi is one of the first newseason apples to enter the market

Mr Apple kicks off season with Posy apples

In-store branding and gifts with purchase aim to incentivise sales.

by Bree Caggiati

TNew Zealand apple and pear harvest up in 2024

The annual New Zealand Apples and Pears (NZAPI) crop estimate forecasts national production will increase 12 per cent on the 2022 crop total this season. Volumes are set to rebound from 2023, when the crop suffered significant damage due to Cyclone Gabrielle.

he New Zealand apple season is off to a strong start as the harvest of Mr Apple’s early season variety, Posy, begins.

Ben McLeod, global sales manager at Mr Apple says the conditions in Hawke’s Bay were excellent for growing the early season fruit.

“Growing conditions for Posy have been ideal,” he says. “We’re now seeing fruit that is sweet, fragrant, crisp and with the subtle pink blush that Posy is famous for.”

Despite limited volumes, Mcleod anticipates demand for the 2024 season will be strong throughout Asia.

Mr Apple is set to lean into the delicate and floral nature of Posy apples with whimsical branding across packaging and in-store displays as well as gifts with purchase for consumers.

“Posy is always an exciting way to start the season,” Mcleod says. “This year we will create a beautiful in-store experience to engage consumers.”

Bridget Owen, marketing manager for Dazzle and Posy at Mr Apple says gifts will include Posy-branded umbrellas and gua sha stones.

“We’re bringing the brand to life in-store and have exclusive gifts with purchase,” says Owen, “Posy makes an ideal gift apple, or a special treat for oneself.” A @breefruitnet

BELOW—The whimsical Posy branding is showcased across packaging and instore displays

The estimate forecasts export volume at 21.2m cartons (18kg tray carton equivalents), or 382,000 tonnes, and expects fruit to have excellent size, colour, eating and flavour properties. NZAPI also anticipates higher dry matter, which enables better storage of the fruit.

Karen Morrish, chief executive of NZAPI, says the favourable forecast is down to a combination of near-perfect growing conditions and hard work from growers following an incredibly tough few years with economic losses from Covid-19 and Cyclone Gabrielle.

“The weather conditions in all growing regions have been excellent, with the warm and dry conditions pipfruit needs,” she says.

“While conditions have been great, the season’s expected success is also down to sheer hard work.”

She adds although growers work hard every season, for those impacted by Cyclone Gabrielle the past year was incredibly tough and with some still recovering, it continues to be challenging.

“Many growers had to dig their orchards out of silt, so it is amazing, and surprising, to see where we are today after where we were a year ago,” Morrish says.

“Apple trees have proved to be resilient and so too are our growers.”

EnzaFruit wins Envy PVR case in China

Plant Variety Rights successfully defended under China’s revised Seed Law

by Liam O’Callaghann @liamfruitnet

EnzaFruit has won a Plant Variety Rights (PVR) infringement civil case in China, successfully protecting the IP of its Envy apples.

The New Zealand-based company was awarded its full claim for significant damages by Lanzhou Intermediate Court of Gansu Province.

The case surrounded the Scilate apple variety, branded as Envy, which is also legitimately grown in China with EnzaFruit’s partner, Joy Wing Mau.

EnzaFruit’s case was prosecuted by Lusheng Law Firm with its specialist IP lawyers overseeing all the investigation, evidence collection and analysis during the saplings planting and fruit harvesting seasons.

Lusheng’s IP litigation team ensured all evidence was collected from several orchard sites in China to capture the necessary propagation materials and conduct DNA analysis to be presented as evidence in court.

Morgan Rogers of EnzaFruit says Scilate apples and the premium Envy brand are renowned globally, with consumers and customers in over 60 countries seeking them out.

“Significant research, development, marketing and sales investment has gone into creating the unique variety and building our premium Envy brand, which is why

we strongly protect and defend our IP to ensure its value flows through to consumers, customers, licensed growers and communities,” says Rogers.

“We thank Lusheng Law Firm for their support in protecting our IP in China and ensuring our Chinese growing partners investment is protected, and for creating a precedent which discourages PVR infringement and provides enhanced PVR protection.”

Jerry Zhao, Lusheng senior associate, disputes resolution, one of the leading attorneys managing

BELOW—The Envy brand is globally renowned with customers in over 60 countries

the case, says with the rising demand for quality fruit and vegetables, especially within China and across the Asia-Pacific region, protecting the IP of agriculture businesses responsible for importing or exporting valuable patented food produce is increasingly important.

“The plant breeding process can be extremely complex, requiring a significant amount of time, financial investment and human resource to create any new plant, fruit or vegetable variety,” notes Zhao.

“The newly implemented Seed Law allows us to protect client’s PVR rights more comprehensively, and importantly, application of punitive compensation, in addition to statutory damages, also showed (the) Chinese court’s determination to discourage PVR infringement with high level PVR protection.”

Sunny Su, Lusheng principal, digital and commercial team, another lead attorney on the case, adds: “The fact that we were able to gather and analyse all intelligence against the seasonal constraints of planting and harvest times, to win the highest ever compensation for our client is a testament to our specialist litigation team. The Chinese Court made the right decision as it will be well-received by the wider agriculture sector and any food business who is importing or exporting goods to China.” A

FRESH FOCUS

SOUTH AFRICAN TABLE GRAPES 2024

PUBLISHED BY

Committing to growth

Investment in new varieties and enhanced marketing campaign equip South African table grape industry with tools for Asian expansion

PRODUCTION

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CREATING A PROGRESSIVE, EQUITABLE AND SUSTAINABLE TABLE GRAPE INDUSTRY

TABLE GRAPES OF OUTSTANDING QUALITY AND TASTE, WHICH ARE RESPONSIBLY GROWN IN SOUTH AFRICA TO MEET THE HIGHEST GLOBAL STANDARDS, START THE JOURNEY FROM THE FOOT OF TABLE MOUNTAIN TO REACH MARKETS AND TABLES AROUND THE WORLD.

Assisting producers to retain, grow and optimise markets is the most important function of the South African Table Grape Industry (SATI), an enabling grower association. SATI represents growers on key government and industry initiatives aimed at creating more opportunities from ownership to accessing new markets in a sustainable way.

SATI assists growers with numerous support services including Industry Information, Transformation, Research, Technical

SOUTH AFRICA – QUALITY ON ROOT

Market Access, Market Development as well as Training and Development with the objective to establish South Africa as the Preferred Country of Origin for the world’s best tasting grapes.

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SOUTH AFRICAN TABLE GRAPES 2024

South Africa ready to roar

South Africa maintains certain advantages that position it as a favourable supplier to the global market

South Africa is entering this season with a crop of excellent quality emerging from its vineyards and a renewed commitment to build its base in Asia. After two tough years things are returning to normal in the marketplace. Success this year will likely be determined by how best the industry copes with several logistical challenges caused by events far away from the farm. Growers understand there is nothing they can do about these challenges and their focus is entirely on growing and packing the best grapes and getting them to market as quickly as possible.

They are equipped with a great cultivar offer fuelled by increasing volumes of the best varieties. These include new generation white and red grapes that suit the palate of consumers in Asia.

South Africa maintains certain advantages that position it as a favourable supplier to the global market. These include an established history as a preferred supplier and long-standing supplier relationships. Familyowned businesses and focused commercial players offer a personal touch and the ability to tailor to the market’s specific needs. It also boasts an extended marketing window of five months, with the ability to supply indemand, new generation cultivars throughout this period. Not to mention its reputation for delivering quality products.

This year South Africa is expected to ship some 75m cartons and this edition of Fresh Focus South African Table Grapes tells the stories of the dedicated table grape community determined to provide the best fruit to world markets.

Fred Meintjes Editor

Production growth backs Asia push

Strong crop and growth in exclusive and trusted varieties to fuel opportunities for South African table grapes in Asia.

by Fred Meintjes

South Africa is set to continue its expansion into Asian markets this year – boosted by a return to growth in its export volumes and expanded promotional campaigns.

Peak industry body South African Table Grape Industry (SATI) says the total export crop is now likely to reach nearly 76m cartons. It is a development welcomed by SATI as it represents a substantial increase compared with last year.

“SATI believes the opportunity remains to increase South Africa’s exports to Eastern markets,” says AJ Griesel, SATI’s chief executive.

“As part of our long-term strategic plan, we continue to strengthen trade and government relations in these markets as well as continuting generic marketing campaigns in identified markets.”

Griesel says supply constraints out of the US and forecasts of stable to lower volumes out of other Southern Hemisphere producing countries should provide

good opportunities for South African grapes in certain markets.

He notes South Africa currently enjoys market access to 17 out of 20 of the world's largest table grape importing markets and is the fourth largest table grape exporter by value.

“Our China Market Development Campaign received positive feedback from trade and consumers last season,” says Griesel.

“With the support of the Western Cape Department of Agriculture, SATI plans to continue marketing initiatives in China and to extend this to additional Asian markets including Vietnam.”

SATI’s initiatives in China are set to focus on consumers – with more opportunity for direct engagement.

“A recent visit to Vietnam enabled SATI to engage with exporters and the SA Ambassador to Vietnam,” says Griesel.

In terms of further expansion in South-East Asia and other Asian markets, Griesel says South

Africa is in the final stage of market access negotiations with the Philippines and expects to be able to make an announcement on progress soon. “Following this, other prioritised markets include Korea and Japan,” he notes.

The South African table grape industry has ensured producers remain aligned with global market trends in varietal development, enabling them to supply markets with desired cultivars. Based on the latest vine census, a continued upward trend in white seedless grapes in certain regions is expected.

To facilitate growth in new markets South African growers are concentrating on varieties that are in favour with consumers in Asia, and they are eager to meet the exacting standards required. Growers will continue to pursue the latest varieties from a range of breeding programmes around the world to keep up to date with expectations.

At the same time, latest industry

TOP LEFT—

Crimson Seedless remains a core part of the South African offering TOP RIGHT—A larger crop will drive increased exports to Asia

OPPOSITE

CENTRE— Marketing efforts in China will focus on consumers this year

OPPOSITE

BOTTOM—SATI chief executive AJ Griesel

export figures indicate that the tried and trusted red seedless grape Crimson Seedless continues to dominate the middle to late season in South Africa. SATI chairperson Anton Viljoen notes Crimson still has a role to play.

“It is a great variety and we have shown that we can produce the best Crimson in the world,” says Viljoen.

However, the figures also show new white seedless varieties Sweet Globe and Autumncrisp are rapidly increasing in production as is the red seedless Sweet Celebration. They all now sit in the top five of South Africa’s cultivar list.

With these varieties – and perhaps with a handful of other new varieties – set to dominate the future demands of consumers in Asia, South Africa is well placed.

The immediate threat to the South African table grape industry’s push for growth is the disruptions in South African ports, specifically the main port for grape shipments in Cape Town. These

“SATI plans to continue marketing initiatives in China and to extend this to more Asian markets including Vietnam”

disruptions have decreased export opportunities from Cape Town and growers are moving their containers across South Africa to east coast ports to meet schedules to Asia.

This is not unique to grape exports, with one apple and pear shipper explaining that it transports fruit from Maputu in Mozambique to Durban and Port Elizabeth using “really creative logistics solutions”.

It is doubtful that this will dampen the spirit of a South African grape sector boosted by its best crop in three years – a crop seen by all to represent the resumption of growth for the South African industry.

Promising 2024 crop welcomed by industry

SATI chairperson pleased with crop prospects and quality in the face of challenging logistics environment.

by Fred Meintjes

The 2024 South African table grape harvest is looking up, according to Anton Viljoen, chairperson of peak industry body SATI. He says a return to a more normal crop after two tough years will be welcome and place the industry on a good path to growth.

“Having said that, I think our industry will take a short break from growing in volume. Rather, we will put our time and capital into practices to protect our crop by using nets and plastic cover to avoid the adverse effect of climatic conditions and improve our quality and the condition of our fruit

through new cooling methods and practices,” explains Viljoen.

“Overall, though, we are pleased with prospects this season because it will be good for our industry to return to normal. We are a country which has proven its ability to supply the world with good quality grapes. We are also a reliable country of source and fulfilling our commitments to our receivers.”

The early regions of South Africa have produced a very good crop, says Viljoen. Most of the grapes from the Northern Cape are expected to be shipped to Europe, with shortages in those markets

creating additional demand.

“The Western Cape might have a slightly smaller crop than expected, but still enough to supply our traditional markets as well as new markets,” says Viljoen.

“As far as Eastern markets are concerned uncertainty regarding shipping through the Red Sea region is muddling things a bit. It makes it difficult for shippers who transship via the Middle East to Eastern markets.”

This disruption may also see India shipping more grapes to Asia. Despite these potential market fluctuations, Viljoen says the industry remains committed to developing Asia.

“Premium grapes will still sell well in the East, but perhaps less than last season. We can see there is a lower demand now,” he continues.

“Eastern markets do well if you send them exactly what they want. Big, crunchy white seedless is the star variety there. The only problem is that every other importing country also wants it and can sell it well. The fact that the Eastern market requires only a few varieties with big size, makes the volume out of which we can supply very limited.”

South Africa’s production is not static though, with new varieties coming to the fore. The industry is also working to address other challenges such as dry stems produced by logistics disruptions, all in aid of servicing market expectations.

“We are doing plenty of work on systems to prevent dry stems with the cooling regimes,” Viljoen notes.

“It is a fact that most of the varieties now being planted are white seedless varieties and this presents great opportunities to us for future growth.”

LEFT—SATI chairperson Anton Viljoen says growers are focused on quality

Hammering home the health message

South African industry open to realigning its consumer messaging with a focus on the health story of grapes.

by Fred Meintjes

In a produce market where a ‘grape is almost always just a grape’, and the industry is battling for space with other modern day consumer products, South African table grape industry leaders say they are ready to spread a fresh good news story around.

At the World Table Grape Conference in Cape Town in November 2023 David Hughes, Emeritus professor of food marketing at Imperial College London and visiting professor at Royal Agricultural University in the UK, challenged the table grape world to do something about its product category and bring a

compelling message to consumers.

“I cannot believe that the world’s table grape growers have not used the health qualities of their products to move the category out of the commodity business,” he said.

This challenge is perhaps not new, but it seems as if the South African table grape industry is now ready to lead the way. Throughout the years much research has been done on the health qualities of grapes – the oldest perhaps the story of a South African woman, Johanna Brand, who claimed to have survived cancer back in 1926 by following the “Grape Diet”. The

LEFT—Research has highlighted the health benefits of eating table grapes

now famous book on this subject, entiled The Grape Cure, was republished at the end of the 1990s by Capespan in promoting its grapes in North America.

More recent research has confirmed the nutrients in grapes may help protect against cancer, eye problems, cardiovascular disease, and other health conditions.

Hughes compared the grape category to the major other produce lines and noted that somehow, the table grape industry had not seized all the opportunities to convey a health message to consumers. A message that had the potential to cut though.

“Modern shopping trends, with online shopping being at the forefront, and aggressive pricing in price wars as traditional retailers and cost cutters struggle for control of the retail sector, have taken much of the ‘theatre” out of shopping,” he said.

SATI’s market development and communications manager Mecia Petersen says the health message can also resonate with Asian consumers.

“We really want consumers in the markets of the East, and in fact around the world, to choose the grape because it is much better for you than the other modern-day products offered to them,” says Petersen.

A campaign to focus on the health-giving qualities of grapes already has some strong underlying support from industry although all messages will always have to be strongly based on research. There is also the challenge of focusing the message at a consumer level. Still, there is a sentiment in South Africa that it is time to bring the health message to the category.

Investing in varieties for Asia

South African industry well positioned to produce a range of table grapes to serve the palates of Asian consumers.

by Fred Meintjes

South African table grape growers are continuing to plant a range of new cultivars that will not only enable growth in new Asian markets but have an impact worldwide.

The process, they concede, is not an easy task as the cost of investing in new vineyards continues to increase – and what they decide to plant this year will have to last for years to come. They also now

BELOW TOP—Newer varieties like Sweet Celebration are headlining South Africa’s offer

BELOW BOTTOM—Autumncrisp is among the varieties growers are planting to satisfy the tastes of Asian consumers

have to invest in practices that protect their crops as unpredictable weather becomes the norm rather than the exception. Nevertheless, there is a handful of new varieties growers say will guide them into Asian markets in the future.

Ironically, one of the most important varieties, Crimson Seedless, is not new. It still accounts for a significant share of production and forms the backbone to South Africa’s current export efforts.

The other varieties that headline the industry’s offering include the early white grape Sweet Globe, the red Sweet Celebration and the consumer favourite Autumncrisp. There are several other new varieties with the potential to break through to the top level, but this will take some time.

“What is needed are other similarly good varieties from early to late in the season which will allow us to market our range of white and red seedless varieties seamlessly throughout the season,” says veteran Hex River Valley grower Leon Viljoen.

Growers also note if table grapes are to succeed against the tough competition posed by other categories in global markets, it will be increasingly important to harness branded cultivars or ranges of cultivars.

Orange River grower Alwyn Dippenaar says current branding efforts that only market grapes as either red, white or black seedless varieties do not compare.

“There is no promise of exceptional taste, flavour and quality in that sort of branding,” says Dippenaar.

The table grape sector is already taking action on this front as seen in recent announcements from Sun World. The table grape breeder is launching a new brand of red seedless grapes called Ruby Rush and has launched a global Autumncrisp brand, which will be supplied by participating growers as the production season moves around the year.

The Ruby Rush brand will incorporate a range of early season red varieties with similar appearance, colour and taste. Table grape breeder Paola Barba says the first of this range of varieties will be Sugrafiftythree. For growers in different climatic regions where varieties perform differently, the choice remains a difficult one. However, there is a consensus that if table grapes want to stay a mainstream consumer product, there is much work to be done to swing consumers away from the present day ‘fad foods’ to enjoy the true glory of the grape.

South Africa expands grape campaign in Asia

Vietnam will join China as a focus of the South African market development campaign in Asia this season.

by Fred Meintjes

The South African table grape industry’s market development campaign is set to widen its scope this season as exports to markets across Asia grow.

The campaign is now in its third year and while China will remain a key focus, promotional activities will also be conducted in Vietnam for the first time, a market industry leaders see great potential in.

“Our campaign is unique because it is jointly funded by our regional government, the Western Cape government’s Department of Agriculture and the grape industry body, SATI,” says Mecia Petersen, SATI’s market development and communications manager.

By the end of January, participating exporters had already confirmed they will ship a significant number of containers specifically for the promotional campaign.

“We are focusing mainly on cultivars such as Sweet Globe, Autumncrisp and Crimson Seedless, all being amongst our top cultivars,” Petersen notes.

The campaign will again be executed under South Africa’s popular brand positioning, ‘Beautiful Country, Beautiful Fruit’. This is also the positioning for activities of the national fresh produce organisation, Fruit South Africa, which is set to exhibit at Fresh Produce India in Mumbai this March.

Petersen says promotion partners in China which confirmed participation include Joy Wing Mau and Yonghui Superstores.

“Yonghui will have our grapes at 14 stores in Fujian, Zhejiang, Shanghai and Anhui provinces during weekends during March and April,” she notes.

“There is also a small-scale product launch planned for midMarch in Shanghai at one of the Yonghui stores. Joy Wing Mau will bring 25 stores across various cities from mid-March to mid-April into the campaign, with in-store product displays.”

At the time of writing exact details were being finalised, but a significant product launch event is also planned in March in Shanghai, with media exposure and performances. There will also be media and social media backing for the campaign.

The campaign will run in Vietnam in March though activities will be more limited for the first iteration.

Petersen says WinMart Supermarket stores in Hanoi and Ho Chi Minh City are planning activities from the second week in March.

“This will include product display in 15 stores, and we are also looking forward to a promotion with Fresh Fruit-X in various stores,” she concludes.

Maintaining fruit quality over long supply chains is often a

this year

ABOVE—

held in multiple cities across China

challenge for promotional campaigns such as these. However, SATI says regular shipping routes to Asia are available, and many exporters are utilising these successfully.

“We have seen significant expansion in routes to the East. As with any export opportunity, planning is required and shipping fruit as part of a programme is often a successful strategy,” says SATI’s chief executive AJ Griesel.

TOP—South Africa’s market development campaign returns for a third season

Product launches will be

New markets increase compliance pressures

PPECB is playing an increasing role to support the South African export sector as expansion adds compliance requirements.

by Fred Meintjes

As South Africa gains wider access to markets in Asia the need for compliance increases, and so do the responsibilities of one of the oldest fruit safety and quality assurance organisations in the world.

Marketing organisations, export companies and farming groups have come and gone – yet one crucial cog in the wheel of South African produce exports has remained, the Perishable Products Export Control Board (PPECB)

“As South Africa gains more access in the East, we have to deal with new protocols and entry conditions,” says Lucien Jansen, PPECB chief executive.

“We are now close to 100 years old, but we still touch the lives of people in every fresh produce export sector in the country.

“The greatest contribution of the past was that we helped to set export standards and a seal of approval which grants South African fresh produce access to the countries where it is finally offered to consumers.”

In a world where consumers increasingly question the safety of the products that end up on their tables, compliance has never been more important, according to Jansen.

“South Africa is slowly getting access to more and more countries, and this almost always involves complex protocols, the adherence

to which we have a role to play in,” he says.

“In our traditional markets there are new complex demands attributed to food and plant safety that need to be complied with.”

At present, access for South African stonefruit to China and India is on the cards, while access for avocados to India and blueberries to India and China are also key priorities.

“Every time [a market opens] there is a new set of entry requirements that needs special attention,” says Jansen.

“Our role may have changed over the years, but we need to stay relevant in a new trading world.”

Increasingly the best laid plans can also be outdone by unexpected hiccups in the logistics field – with present problems in South African ports and world events interfering.

“In this world we have to be flexible while still maintaining our high standards, and the challenges become more complex,” Jansen concludes.

TOP—PPECB chief executive Lucien Jansen

RIGHT—The PPECB helps industry to meet export requirements.

Opportunities extend beyond China

Timing of production paired with premium varieties are key assets to South Africa in the bid to build and maintain market share in South-East Asia, say leading buyers.

by John Hey

@johnfruitnet

While China is the focal point of South Africa’s table grape marketing activities in Asia, other markets across the region are showing promising signs of growth.

Vietnam has emerged as one of the standout market opportunities, and SATI is launching its first promotions in the South-East

Asian country this March.

South African grapes have already carved out a noteworthy market share, accounting for 5 per cent of Vietnam’s total grape imports in 2023, according to Vietnam customs data. South Africa shipped 5,352 tonnes to Vietnam, making it the thirdlargest supplier after China

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ABOVE—Fresh Fruit-X’s Angel Mompo sees good potential for South African grapes to build their presence in Vietnam

»

(85,728 tonnes) and Australia (13,105 tonnes).

Angel Mompo, Fresh Fruit-X sales director for Vietnam, Myanmar and the Philippines, sees good potential to build on this foothold.

“South African grapes continue to experience strong demand in January and February, especially during the Lunar New Year period,” he notes.

“Vietnam specifically requires ‘premium’ grape varieties such as Midnight Beauty, Sweet Globe and Autumncrisp. This demand begins when Western Cape’s production is ready, typically around Week 52.

“This year, there has been a notable increase in volumes shipped by air compared to last year, yielding positive results throughout the supply chain.”

South African grapes boast several competitive strengths, he notes. “South Africa’s smaller packaging format of 4.5kg [cartons] is well suited to local sales and distribution – it’s easily marketable,” says Mompo. “The pricing of South African grapes is also competitive, and they have a favourable production window.”

In terms of weaknesses, Mompo notes that South Africa has a

narrower supply window for ocean shipments compared to Australia and the US. “The transit time is also longer compared to other supply origins and South African grapes incur an additional 8 per cent import tax that other origins do not encounter,” he adds.

Such issues are not helped by the ongoing logistical challenges facing the South African industry at the nation’s ports.

One of the keys to growth for South African table grapes in Vietnam is to enhance consumer awareness and brand development, according to Mompo. “To improve performance at wholesale and retail levels, South Africa needs to increase marketing efforts, including in-store promotions, and raise consumer awareness about the benefits and uses of the product,” he notes. SATI’s launch of industry promotions in Vietnam looks timely from that perspective.

Malaysia is a much more established market for South African grapes, but one where the industry can leverage on premium varieties amid increased competition on generic varieties, according to Koay Swee Aik, managing director of leading importer Chop Tong Guan.

“South Africa’s smaller packaging format of 4.5kg [cartons] is well suited to local sales and distribution”

ABOVE RIGHT—Premium varieties such as Midnight Beauty and Sweet Globe are key to the South African offering in Asia LEFT—Chop Tong Guan’s Koay Swee Aik says South Africa faces competition in Malaysia from Indian grapes

“South African grapes are important to Malaysia because strategically their supply timing is good,” says Koay. “They can bridge the gap after California and China grapes finish from December to February. Their transit time is shorter compared to Peru and Chile and their timing is earlier than Australia, so they enjoy a window of two to three months. South Africa is our major source of supply during this period.”

Nevertheless, South African grapes are facing increased competition from Indian grapes, which have been coming into Malaysia in greater volumes this year, according to Koay. “Indian grapes are more competitive on price, and they’ve improved in quality over the years,” he points out.

Amid the increased competition, Koay says South Africa can differentiate through its production of ‘premium’ varieties such as Sweet Globe, Autumncrisp and Sweet Joy. “These varieties still sell well in Malaysia, and they represent South Africa’s ‘edge’ over Indian grapes at this point in time,” he says.

“Moving forward, I see an opportunity for South Africa to move more into premium varieties while the market for generic varieties is taken up by Indian grapes.”

Angon Fruit strengthens Asian presence

Paarl table grape pioneer spreads its wings, moving into new products and markets.

by Fred Meintjes

South African exporter Angon Fruit is primed to balance new opportunities in Asia with existing business in Europe as South Africa’s table grape market access grows.

“Although we have a keen focus on maintaining strong relations with our customers in Europe and the UK, we also see our market

“We also see our market share in the East growing as South Africa gets access to more markets”

BELOW TOP—Angon Fruit regularly visits Asia Fruit Logistica BELOW BOTTOM—Altus Kirsten (far left) has built strong relationships in Asian markets

share in the East growing as South Africa gets access to more markets,” says Altus Kirsten, chief executive of Angon Fruit.

“We therefore focus on the best varieties all year round, to further expand our reputation as a trusted supplier of quality fruit.”

Angon Fruit was originally established by the Kirsten family from Paarl in the Western Cape to handle its table grape export crop. Kirsten says the company has added blueberries and citrus fruit to its export market basket to supply international customers with quality produce all year round.

“The venture has been very successful to the extent that other grape growers now supply us, and we have also extended to blueberries and citrus,” he says.

“We take immense pride in offering a range of premium products that showcase our commitment to excellence.

“In order to offer premium products to our receivers, we included citrus and blueberries, which covers the period from April till November when we do not have table grapes available.”

A regular visitor to Asia Fruit Logistica and markets in Asia, Kirsten says the company works closely with other growers, adhering to strict standards and certifications.

“This is to ensure that every fruit that reaches the tables of consumers is a testament to our dedication,” he says.

The Kirsten family table grape business in Paarl was originally established by renowned South African grower, Jan Kirsten, who was followed by his sons JD and Freddie Kirsten. The third generation of Kirstens is now managing the growing and harvesting businesses in Paarl.

Logistics complexities prompt new solutions

South African logistics service providers face tough conditions as world events disrupt supply chains.

by Fred Meintjes

It has always been a complex operation to successfully land fresh produce from South Africa in Asia. This year, a combination of world events and container port failures has increased the challenge and is driving exporters and shipping companies to seek new solutions.

“We are loading our fruit from the Western Cape from Maputo in Mozambique down the coast of South Africa in Durban and the Eastern Cape – all the way to Cape Town, to resolve challenges and maximise opportunities,” says one export group.

One of the key challenges facing Western Cape producers – where the bulk of table grapes and pomefruit is produced – is the deficiencies in the container terminal in Cape Town. A combination of high wind and

delays in loading vessels, has resulted in vessels having to wait outside the port for up to two weeks. Naturally this caused shipping lines to reduce their calls at the Cape Town port.

This is where exporters and logistics companies started moving fruit across the vast country to ports where they could link to Middle Eastern and Asian routes. Some shipping lines, opting to bypass Cape Town, instead loaded in Port Louis in Mauritius, where the South African containers were transferred by feeder services.

More recently disruption in the Red Sea and to shipping services through the Suez Canal has also affected transshipments via the Middle East.

All this is increasing the cost of shipping to Asia – with long legs of internal overland transport and

LEFT—Disruption at the ports has exporters looking for alternatives

BELOW—Some exporters are sending shipments across the country to ports on the east coast of Africa

transshipping costs.

The South African fruit industry bodies, working with the country’s exporters association, have consistently heaped pressure on the state transport company, Transnet, to increase its performance. SATI and many grape growers have stated that the country’s exports will be in jeopardy without lasting solutions, especially in the main table grape export hub of Cape Town.

Included in fruit industry demands are the addition of private sector companies in port operations – as was seen last year in Durban with the involvement of an outside investor in the container terminal.

South African sources say the port of Maputo in Mozambique now provides an attractive option to exporters from the northern parts of South Africa, but Western Cape-based exporters have also been using it this season.

The Matola Cargo Terminal cold store in Maputo, the DP World Container Terminal, now boasts new reefer yards and a new operational set up.

Maputo, and even Walvis Bay on the Namibian coast, have been used by exporters and logistics service providers in recent times because of the problems in South African ports.

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Bloom Fresh dials up the innovation

Six months after its creation, CEO Kenneth Avery tells Asiafruit why the new breeding powerhouse is a win-win for growers and consumers, and what we can expect to see from the company in the coming year.

by Maura Maxwell @maurafruitnet

It has been six months since Bloom Fresh was born from the fusion of SNFL and IFG, creating a global powerhouse in table grape and cherry breeding. One of the key advantages of bringing together two such prestigious programmes was to generate even better plant material and speed up the development of new varieties.

Kenneth, what does Bloom Fresh bring to the table?

Kenneth Avery: IFG has a history of creating varieties with fantastic flavours that appeal to consumers, such as Cotton Candy and Candy Snaps. Flavour is also a feature of SNFL’s germplasm pool but its varieties are well known for their excellent agronomic qualities –they are easy to grow, high yielding and require less labour for example. And so the concept was to put these two incredible germplasm banks together and start to create new crosses that give consumers

what they want, but ultimately at the same time provide a profit opportunity for our growers as well.

One of the things that we know through research is that consumers want to have a consistent eating quality and that one of the reasons why they don't buy more grapes is because they don't have that. By putting these two breeding programmes together we have a chance to create varieties that are both

easier to grow and guarantee a more consistent quality for the consumer. That’s the way you will increase demand for grapes around the world.

You talk about the importance of new varieties having that allimportant consumer appeal. One of the new projects you have coming through the pipeline is the development of a redfleshed variety with super high antioxidant levels. How is that going?

KA: It's going really well. The concept came from wine grapes – drinking wine in moderation is good for you because of the antioxidants it contains.

But a wine grape is not great to eat as they are softer and smaller than table grapes, whereas what consumers want is crunch. The idea was that by crossing the two of them we could create something unique, a new category for grapes that could help increase demand.

We’ve done a lot of research around table grapes which shows that they have higher antioxidant levels than blueberries, which are known globally for being a super

food. We want people to start talking about grapes in a different way, to see them as a healthy snack, much like blueberries. Retailers and growers are very excited about this project and the consumers that have heard about it in trials are excited about it too.

So are these varieties already being grown commercially?

KA: Today we have over ten redfleshed varieties in different sizes and shapes. A couple of years ago we began planting what we call semi commercial blocks – where we create enough plants over an area that allows growers to see how they perform and produce enough volume to allow us to carry out taste testing. By this summer we’ll have sufficient volume to do a lot of sampling activities.

Extreme climatic events are becoming increasingly frequent and growers need robust varieties that can withstand these challenges. At the same time, yields have to be high to make a variety commercially viable and, as you mentioned, there has to be great eating quality. How do you ensure

OPPOSITE TOP—Global production of licensed table grape varieties is growing every year

OPPOSITE BOTTOM—Bloom Fresh CEO Kenneth Avery

LEFT—SNFL and IFG’s combined germplasm banks boost the potential to create exciting new varieties

that you are able to satisfy all these requirements?

KA: As we're advancing products through the pipeline, we're looking to check every box. We want high fertility, exceptional fruit quality and high yield. At the same time, we have to make sure that we’re growing the variety in an optimal way.

A grape is essentially a balloon holding water – you want that plant to take energy and convert it into the sugars, size, texture and everything else that makes that grape special.

But you could have too many bunches, which will require pruning to actually pull back the volume in order to get a higher quality. As we work with our varieties in our research plots, we come up with what we believe is the best recipe to hand on to the grower to maximise the volume. Then the grower will do what they do best, which is take our recipe and continue to work with it and develop it to suit their specific growing conditions.

Bloom Fresh recently mapped out some of its key trends and predictions for 2024, one of which was the potential to expand your presence in key Southern Hemisphere producing countries. Where do you see the best opportunities?

KA: The industry today is divided into two camps: licensed hectares and unlicensed hectares – the Red Globes of this world that have been around since the 1950s. While the older varieties are open and free for people to use, they have not stood up to the economic and environmental challenges of our time.

In Chile we’re seeing a greater willingness to

switch over to licensed varieties because growers recognise the economic value that they bring. Peru, meanwhile, has seen incredible growth – it has a great reputation for producing a very high quality grape. Mexico, I believe, is another country that continues to expand. And then of course, there’s the US, which has been relatively stable the last five years.

What about in Europe?

KA: Spain’s a very stable, mature market where we have enjoyed very good growth over the years. But there are not a lot of new hectares being added. Egypt, by contrast, has seen very significant growth. Egyptian growers are very good – they have been farming for thousands of years. There has been a lot of infrastructure investment there from both growers and the government, so I’m really bullish about Egypt. Italy is the largest producer in Europe in terms of surface area. We’re seeing some switchover from open to licensed varieties which is an opportunity for us.

The other big producer that we haven’t mentioned is China. In the past there have been well documented IP problems that have put breeders off. What is the situation like now?

KA: Things have changed a lot.

Over the past five years China has passed some of the best IP laws in the world and there has also been reform around land holdings to allow for bigger farms. I think the Chinese government has made a lot of positive changes. We recently won an enforcement case there so I think the tide has turned.

China is also the number one consumer market for a lot of our growers. Chinese consumers love grapes, so we see it as a great opportunity. We have a presence in China and a number of our varieties are registered there. But we’re still working out how to build out China from a growth perspective. We want to do it right and with the right partners. I’ve managed a couple other businesses that were in China and success is always going to be based on a mutual collaboration in my opinion. It’s got to work for

the Chinese farmer, just like it has to work for the Peruvian farmer. And it’s got to work for us at the same time.

Together, SNFL and IFG varieties account for close to 50 per cent of planted acreage in some countries. What do you say to smaller producers who fear that less competition in the market when it comes to choosing varieties means that they will have less bargaining power?

KA: Globally, our overall market share is much lower than that, although we do have some higher market shares in some countries. But growers have a choice. We have competitors out there that have some good varieties of their own. Ultimately, we want to win based on the quality we provide because this is a true partnership. You know, I’ve been in a lot of businesses where I’ve used the word ‘partnership’ because I thought it sounded good and I wanted it to happen, but it was really more transactional than a true partnership.

But in this business we spend all that energy on the research and development of new varieties and then the farmer plants them over a period of 10-15 years…we really do become partners who constantly work together to get better and better. At Bloom Fresh we want to be seen as a leader – not only in grape and cherry germplasm, but also in how to integrate technology. Part of our mission is to help the grower maximise what they do on a daily basis. And if we can do that well we believe we can play our part in significantly increasing grape consumption. A

RIGHT—Bloom Fresh provides a full package of technical support with each new variety it launches

Australian grape growers celebrate positive season start

Asiafruit rounds up some of the latest developments for the Australian table grape industry.

by Bree Caggiati

After a challenging few years, the Australian table grape industry has enjoyed a bright start to the 2024 season. Improved weather has led to higher quality fruit, while industry events have provided an opportunity to invest in learning and connection. Innovation continues this season, with growers and exporters improving product offerings, including packaging, and making commitments to sustainable practices.

ATGA TOUR SUCCESS FOR EXPORTERS

Australian table grape exporters returned from the Australian Table Grape Association’s (ATGA) recent market tour encouraged by international interest.

The tour featured trade seminars

and retail visits across Thailand, Vietnam, the Philippines and Indonesia, on 6-14 December 2023.

Attendees had the opportunity to meet with key retailers and wholesalers and build on established industry relationships while viewing supermarket and wet market displays in person.

ATGA chief executive Jeff Scott says the four trade seminars were a “resounding success,” with all major importers, distributors and retailers attending in each of the four countries. He is pleased growers and exporters were able to connect with market representatives.

“Those who attended gained sound knowledge of customers’ purchase requirements and opened the door for future discussions,” he says.

Cordoma Group director Mario

BELOW LEFT—(l-r) Mario Cordoma, Jeff Scott, Esther Sun (Austrade), Jesse White, Soldier Su and Louis Joseph attend the Thailand leg of the ATGA international tour

BELOW RIGHT—An aerial view of FT Farming Group’s 2024 crop

Cordoma attended each leg of the tour and says it was a “very valuable experience” that gave great access to importers.

“It was good to see Australian table grapes still have a good reputation for quality and the continued opportunities for the industry going forward,” he says.

“I found a new customer base that looked promising, especially in the Philippines and Indonesia.”

Algona director Louis Joseph attended the Bangkok event and acknowledges the excitement among customers and the quality of attendees.

“One thing that stood out was the quality of the customers convened for the event,” he says. “All the important trade players were there and interested to hear about the upcoming season, which demonstrates what an important category Australian grapes is for Thai consumers.”

FT FARMING GROUP PRODUCING JUMBO SIZED SWEET ANGIE

Lindsay Blondeau, national sales manager of Australian exporter FT Farming Group, says the 2024 crop is off to a positive start thanks to ideal weather across the production regions of Mildura and Robinvale in Victoria.

“The region as a whole this season has had a really good start on quality,” says Blondeau. “We expect this to run through till the end of grape season as we move through the varieties.”

Blondeau says FT Farming Group’s offering of the Sweet Angie variety is tracking particularly well, noting one block is even producing jumbo size grapes.

“The Sweet Angie variety started harvest in late December 2023 and has been superb quality so far,” he says. »

@breefruitnet

This uptick in quality has given FT Farming Group a successful start to the export season.

“Export is showing good signs of demand across Asia for the Sweet Angie variety while customers are also excited for the Crimson variety to start harvest,” Blondeau says.

FT Farming Group loaded air shipments to start the season with success and will look at loading seafreight as the season ramps up.

BUDOU FARMS COMMITS TO RECYCLABLE PACKAGING

Australian table grape exporter, Budou Farms, will continue its commitment to sustainability this season with the introduction of new recyclable boxes using approximately 25 per cent less material.

“We can ship close to 20 per cent more boxes per container,” says owner Enrique Rossi.

According to Rossi, the boxes, which are made locally, are more rigid than a standard box and interlock at the corners to reduce movement in transit.

Budou Farms successfully trialled an unbranded version of the boxes last year to impressive feedback.

"Buyers compared them side by side and noticed the difference in performance regarding how strong they are under cool room conditions,” he says.

This change is part of Budou Farms’ aim to have fully recyclable packaging in the coming year.

“We will start doing some trials with a fully recyclable sulphur pad from Uvasys,” Rossi says. “We have tested some liners in the past so that is the last bit we have to overcome to achieve our goal.”

Alongside these packaging developments, Budou Farms has planted Bloom Fresh varieties Ivory

ABOVE—Budou Farms’ new recyclable boxes interlock for transit

RIGHT—Grape Co Australia managing director, Adrian Caia, with guests at its exploration day

and Allison with the intention to harvest small volumes next season.

“[We are] very excited to have a wider range of varieties,” Rossi says.

EXPLORATION DAY A HIT FOR GRAPE CO CUSTOMERS

Grape Co Australia celebrated the beginning of the season with an exploration day held at its Sunraysia grounds. Over 100 guests attended the event including key retail and wholesale customers from across Australia and Asia and representatives from table grape breeding programmes including Bloom Fresh and Sun World International.

“Throughout the day, visitors saw first-hand how we utilise innovation and technology to improve the

quality and output of our grapes,” says managing director Adrian Caia.

The event included tours of the fields, cold storage facilities and packing line system as well as a trade relations presentation covering market and brand strategy, innovation and investment, and future collaboration.

A lunch and cocktail dinner were sponsored by Bloom Fresh and Sun World International respectively.

“The feedback from attendees has been extremely positive with many looking forward to future events,” Caia says.

Throughout the day the Grape Co Australia team showcased current plantings and varietal offerings as well as insights into their infrastructure and growing practices.

"[We presented] the latest varietal offerings from leading breeding programmes [and] current commercial test plantings,” Caia says.

“Australian grapes look to be well positioned to have a positive impact across global markets with consistent quality across most varietals.” A

LEFT—Costa’s recyclable packaging will extend to its black seedless varieties

ABOVE—Rainfall has been lower this season

Innovation holds key for Costa

Major grower-exporter emerges from industry slump with new varieties, sustainable packaging and an eye on the future.

by Bree Caggiati @breefruitnet

Harsh weather including rain, hail and flooding has affected Australian growers over the past three seasons, according to Costa Group’s grape marketing divisional manager, Campbell Banfield. Although domestic and export sales improved in 2023, despite the weather, volumes remained lower than their pre-Covid peak.

With better conditions this season, Banfield is confident Costa will see continued improvement in fruit quality and shelf-life across its range.

“This year was significantly better,” he says.“We've had much lower rainfall in spring [and] we're going to see a drier year than we have for the past few years which should help us with sugar development, harvest, and postharvest fruit quality. So, all in all, things are looking quite optimistic.”

Costa’s varietal offering will largely stay the same in the coming year, with much of the development happening behind the scenes.

"[We’re] replacing existing varieties [that have] been in

production for many years with new genetics that the market prefers,” Banfield says. “We've got things that we’re trialling and blocks that we’re changing over.

“With grapes, it's constant innovation.”

Costa continues to invest in key proprietary varieties such as Autumncrisp, Sweet Globe, Adora and Sweet Sapphire and is expecting higher yields with some crops reaching maturity this year.

The first small volumes of Ruby Rush will also come to market this season. Banfield says Costa is planting the Sun World red variety heavily but will use this year’s supply to test interest.

“We'll be sending people small boxes as samples,” he says. “It's a red grape that comes online in January, so we think it's got potential long term both for the domestic [and] the export market.”

Ruby Rush is just one of the newer varieties Costa will trial over the next two to three years.

This focus on development extends to packaging too. In 2023, Costa successfully launched an innovative ‘kerbside recyclable’ paper bunch bag for Autumncrisp grapes. Given the positive reception to the project, Costa is looking to expand the offering to some of its black seedless varieties.

Banfield says efforts toward greater sustainability are incredibly important to the brand.

"It's also a great differentiator in what is a pretty congested market so it's something we will continue to develop,” he says.

Looking ahead, Banfield anticipates continued interest in white varieties across the Asia market.

“Traditionally we didn't [ship] a lot of [white grapes] if you go back ten years ago,” he says. “China historically has been a very strong Crimson market and South-East Asia has always been a strong black market, but every year we see growth in the white market.”

But it isn’t a straight swap, Banfield points out. Interest in Crimson Seedless and black varieties will continue.

“The priority for us is the quality of the fruit you've got in the box,” he says. “If you've got the right fruit there'll always be a market for it in Asia.” A

Australian grapes capable of new highs

Better weather and lower volumes from competing suppliers set the stage for a recovery in Australian exports.

by Bree Caggiati @breefruitnet

BELOW—The fundamentals exist for Australian grapes to hit new production highs

OPPOSITE TOP —Activations for Autumncrisp at the New York Wine & Food Festival and Asia Fruit Logistica

OPPOSITE BOTTOM RIGHT—Sun World licencing manager

Australia, Adam Knoll

from other Southern Hemisphere suppliers meant competition was lower than usual.

“It was really symptomatic of what was available in the market at that point in time,” Knoll says.

After a string of challenging seasons, there is optimism the Australian table grape industry can recapture its prepandemic momentum and return to growth.

Sun World’s licencing manager Australia, Adam Knoll, says the industry has the capacity to reach new peaks with favourable export market conditions to help exporters as the 2024 season ramps up.

“The fundamentals are absolutely there to hit new record highs in terms of production,” says Knoll. “It's just really how weather, cost and profitability play out.”

TOUGH RUN

Pre-Covid, Australian table grape

exports were increasing rapidly but with the restrictions imposed throughout the pandemic the industry, like many others, took a hit. The impact of the pandemic was compounded by a series of weather-affected crops resulting in a difficult few seasons.

An uptick in domestic and export sales in 2023 hinted at industry improvements despite weather conditions, but numbers were still lower than the pre-Covid peak. Knoll says these sales were largely due to late harvest times.

“We were approximately three weeks behind a normal season [in 2023],” he says.

A later harvest in Australia combined with lower volumes

While this resulted in higher sales across the industry, some growers were hit hard.

“We had some producers not harvest, and walk away from crops at the end, just simply because they didn't mature before the weather closed in at the end of the season.”

With improved weather conditions this year, Knoll anticipates harvest will again fall within a normal range in addition to yielding increased production volumes and fruit quality. However, significant rises in production and export costs may still affect final figures.

“We’ve come out the other side of Covid with significant cost inflation. And that's challenging profitability,” Knoll says.

"There may be some economic consequences where growers leave the industry prior to those highs happening, which may contract supply a little bit. We'll see how that plays out.”

MARKET MOVES

While these challenges remain, Knoll sees demand for Australian grapes increasing, particularly in the white seedless offering which has been steadily gaining momentum.

"The demand for Autumncrisp and other genetics in the space is phenomenal,” he says.

“Historically, we've been providing varietals that are really driven around the quality of the genetic offering in that window. So, we might have been providing the best red grape or the best black grape when really, the market wanted more green grapes.

“[With the] introduction of the new genetics we're seeing sales that haven't existed for 40 years.”

Heading into the 2024 harvest, Knoll is feeling

optimistic.

“There's a real shortage of grapes in Asia at the moment,” he says.

After an especially difficult season in the US and the subsequent changes in trade flow out of South America to compensate, Knoll says there is less fruit coming into Asia.

"A lot of Peruvian supply that would normally be shipped to Asia has just gone straight into the US,” he says. “The early region of Peru has just finished harvest, and there's been a significant contraction in volume across most varieties. So, there's a real shortage.”

Lack of competition coupled with higher quality fruit should see the Australian industry recapture the momentum from the end of last season, getting the industry closer to the record highs seen before Covid.

GLOBAL AUTUMNCRISP CAMPAIGN ACCELERATES

Sun World launched a global marketing campaign for Autumncrisp in 2023 off the back of international demand for the variety.

Knoll, says the campaign will continue through this year with activations in the US and Asia.

“We'll see some activations in both markets around some really high-impact targeted campaigns,” he notes.

“We're looking to launch in Asia with a few retailers and certainly, going back into the US considering the amount of supply that comes from South American producing countries.”

Knoll says a key facet of the campaign is coordinating global production to deliver consistent supply and experience to

consumers. Reducing and even eliminating gaps in production allows the brand to gain traction.

“If we can develop a marketing campaign that's really underpinned by our producers

and marketers of our Sun World variety – and varieties that are really meeting that consumer quality, expectation and taste – they can come together with people buying, Autumncrisp again and again,” Knoll explains.

“We know what works behind the scenes, it's just a matter of proving it in a coordinated fashion and bringing multiple suppliers together.”

Managing the equilibrium of supply and demand is a difficult task but Sun World’s role as the breeder and the owner of the genetics and the brand allows the company to influence both sides of the equation.

“We're lucky with the Autumncrisp brand, we have a production footprint now that is very much global. We're able to activate that and go out and do some work to further increase the demand side of the equation so we don't have growers simply just planting more but we have demand increasing as well as the ultimate goal.” A

California citrus battles insect challenge

Delayed sprays due to weather setbacks increase thrip populations in navel oranges and lemons.

by Jeff Long

Well before the California citrus harvest commenced, it was obvious to the industry that there was a significant amount of insect damage to their fruit. The culprit: a tiny pest known as thrip, which likes to make a meal of orange rinds. The industry typically sprays in the late winter or early spring to knock back thrip populations but was delayed in these applications because orchards were mud-bound from one of the rainiest winters in memory. The result has been an abnormally high percentage of Choice grade fruit due to cosmetic damage. Fancy grade fruit has been impacted as well.

“The level of scarring in (Fancy) fruit is higher than the industry

would like to see, but we’re getting by,” says Steve Holly of Voita International Produce. “Choice packs can be a bit rough at times but it’s really not that bad once you dig into the carton.”

Another issue the industry is dealing with this season is a very large size curve.

“Last winter’s rains really helped revitalise the orchards. It leached out salts in the ground that had been accumulating from several years of drought,” explains industry veteran Tom Wollenman.

But with that comes additional challenges.

“Fruit growth this season has just been astronomical, to the point where the size curve is really too large,” Wollenman says.

OPPOSITE TOP—Thrip-affected fruit OPPOSITE BOTTOM—Wet weather has resulted in extremely large fruit size for oranges LEFT—Volume was down for California lemons this season

According to industry sources as of early February, the sizes were peaking on count 56, then 72s, 88s, 40s, 48s, and 113s. Size 138s and smaller were almost non-existent with no shortage of count 36s and larger.

Additionally, fruit maturity has not been accelerating. Although the latest projections from the USDA have pegged the 2023/24 California navel crop at about 76m cartons (18kg) and close to last year’s volume, there is not an overabundance of fruit on the trees this year. »

“This extremely large size curve presents both challenges and opportunities for the industry,” notes Mark Golden of Umina Bros. “The extensive thrip damage will make it more difficult to market Choice (grade) but on the other hand, you can move a lot of fruit

when you have large sizes.”

Given this scenario, most industry observers feel the season will wind up quickly by late spring.

“The rains will extend picking somewhat, but there will be very little left by June,” predicts Holly.

Despite these challenges, export

markets have been importing fruit steadily, if not at record levels.

“The Red Sea (logistical) issues have definitely impacted both Egypt’s and Turkey’s shipments to Asia recently,” says Holly. “That’s helped demand for California fruit, particularly in South-East Asia.”

California lemons have also experienced challenges this season.

“Volume may be down by as much as 30 per cent,” Golden says.

The drop is partly from thrip, which Golden says affected lemons even more than navels. However, fruit sets were also low in the desert districts and in San Joaquin Valley.

“It remains to be seen what kind of crop the (Southern California coast) turns out, but there is some concern of fruit sizing being small,” Golden notes.

“Our biggest concern is the extent of any wind scarring but we won’t know just how much until picking really gets under way in the next several weeks.” A

New shipping services for South African citrus

MSC follows Hapag-Lloyd in boosting shipping options for South African citrus this season.

by Fred Meintjes

South African citrus sources have revealed another international shipping line, MSC, will introduce extra opportunities for citrus exports when the new season starts in April.

This follows a previous announcement that Hapag-

Lloyd is to increase loading at two South African ports, Durban and Gqeberha, by May, with the additional service running till September.

The Citrus Growers’ Association of Southern Africa (CGA) says it is very pleased to welcome an additional direct shipping service

from the ports of Ngqura and Port Elizabeth in the Eastern Cape this season.

“MSC, a global container shipping leader, has recently announced an additional service, running every Tuesday from the end of May to the beginning of September, during the height of the citrus season,” the CGA states.

“MSC has provided the citrus industry with shipping services for many years and this expanded offering is a welcome development.”

The CGA notes the additional service is good news for Eastern Cape citrus growers.

“Growers in Patensie, the Sunday’s River Valley and Kat River who export their high-quality citrus to Europe, will be able to make use of this option.”

These areas contribute a major part of the South African citrus export crop. The CGA previously stated that increased shipping opportunities would bring more stability to citrus exports.

The CGA is presently formalising its crop projections for the season, which are due to be announced in March.

“At present the CGA looks forward to the year with cautious optimism,” the CGA says. “The fruit on the trees is looking very good and we expect an increased crop yield in the coming season.”

There is also the potential for another record season, the CGA confirms.

“It has been projected that South Africa can, with the committed support of all role-players, increase its citrus exports from last year’s 165.1m 15kg cartons to 260m cartons by 2032,” the industry body adds.

“This will not only generate more revenue but create 100,000 more jobs on farm level alone.” A

LEFT—Both MSC and Hapag-Lloyd will add extra shipping services throughout the peak citrus season

Stage set for Australian Citrus Congress

Citrus Australia’s three-day programme will focus on R&D for Australian industry.

by Bree Caggiati @breefruitnet

The latest R&D breakthroughs will headline Citrus Australia’s inaugural Australian Citrus Congress on 5-7 March 2024.

The event will be held at Novotel Sunshine Coast Resort, Queensland and offer a multi-track conference programme and trade show-style exhibition.

Citrus Australia worked alongside Hort Innovation to develop the conference programme which will focus on research and development (R&D) projects and outcomes transforming the citrus industry.

Hort Innovation chief executive Brett Fifield says the new-look event will provide valuable R&D updates to all citrus industry

members, highlighting the work that’s being done to ensure a profitable and sustainable future for the sector.

“As the principal R&D partner of the Australian Citrus Congress, Hort Innovation is looking forward to meeting with the citrus industry and being able to highlight the impactful work being done to support citrus growers,” Fifield says.

“The event will also be an opportunity for us to better understand the current challenges facing the industry, so that we can continue supporting it through future strategic levy investments.”

Fifield will speak in the opening keynote session which will focus on macro trends impacting

profitability across the citrus sector, with Fifield to highlight the depth and breadth of R&D investments being made through the Citrus Levy Fund.

Leaders of several Citrus Levyfunded projects will present across the two-day programme including David Monks of the New South Wales Department of Primary Industries (NSW DPI), renowned soil health and tree nutrition expert Graeme Sait and NSW DPI’s Tahir Khurshid.

A session on the post-harvest sector will examine advancements that are helping produce high quality and safe food for domestic and international consumers. The session, sponsored by Steritech, will be moderated by John Golding of NSW DPI, who leads the levy-funded Citrus Postharvest Program.

“This session will deliver a comprehensive overview of what’s happening in post-harvest and fruit quality management,” Golding says. “Speakers will discuss current and new post-harvest fungicides, developments in storage and maintaining quality through domestic and export supply chains.”

Citrus Australia’s general manager of market development, David Daniels, will discuss opportunities to grow sales in both established and emerging markets, based on his work under the Citrus Market Development, Market Access and Quality project.

The conference programme will round out with an R&D ideation session, which will encourage delegate participation.

Citrus Australia chief executive Nathan Hancock says the conversation will centre on what the next ten years look like for the Australian citrus sector.

“As a whole, the industry has faced some significant challenges over the last few years,” Hancock says.

“We’re starting to see signs of prosperity again, but we’d be naive to think more challenges won’t come our way.

“Citrus businesses must continue to adapt to the changing playing field in order to be profitable in the future.

“Through the Australian Citrus Congress, Citrus Australia aims to provide content and networking opportunities for growers to take home some ideas to adapt in their businesses and on their farms.” A

LEFT—The inaugural Australian Citrus Congress will be held in March 2024

Volumes up for Mexican avocados and asparagus

Weather delays asparagus harvest while avocados aim to enter new markets.

by Jeff Long

US consumers’ ongoing love affair with Mexicangrown Hass avocados continued through 2022/23 with import value rising to US$2.5bn, up from US$470m in 2009, according to the USDA. There were 1.12m tonnes of Mexican fruit circulating throughout the US during the 2022/23 shipping season, accounting for the vast majority of total imports. Coming in as distant runners-up were Peru and Columbia.

quality of its fruit but also due to geography, as major metropolitan markets are only a few days’ trucking distance away from the primary growing regions of Michoacan. In recent years, Mexico has sought to diversify its international distribution by cultivating markets in both Asia and Europe. That trend is expected to continue during 2023/24 as more production from the state of Jalisco comes online.

“Jalisco has gained a reputation as a top-quality growing area for (Hass) avocados over the years,” says Tommy Padilla, Calavo’s senior director of international sales.

“Jalisco’s fruit is mainly from large growers, and we’ve been directing a good portion of our non-US exports to Japan and Canada because they’ve come to appreciate the quality.”

Padilla notes European markets – particularly France and Spain –are also expressing a preference for Jalisco-grown avocados. One of the more rapidly growing markets for Mexican avocados has been China and while access has yet to be granted for Jalisco fruit, Padilla believes that’s only a matter of time.

California-based Calavo Growers has been a pioneer in sourcing avocados from Jalisco, shipping from its own packhouse since 2016.

The current Mexican avocado crop appears to be remaining steady, producing similar volumes to 2022/23 when record levels were shipped to the US market. However, when combined with increasing imports from other producing countries, sales revenues fell by 35 per cent last year. There is optimism for improved returns

Mexico enjoys this virtual monopoly of the US avocado market not only because of the »

ABOVE—Calavo Growers ships from its own packhouse based in Jalisco

RIGHT—Mexico anticipates strong asparagus volumes well into April with plenty of product for Easter

during the 2023/24 season.

“Demand has been strong for fruit from all sources so far but there is anticipation for a stronger market over the next several months as Peru’s volume is expected to be down significantly because of weather issues,” Padilla says. “We are expecting another strong exporting season out of Jalisco.”

ASPARAGUS

Although cold weather and rain delayed the start of the 2024 Mexican asparagus season from Caborca, reports had the harvest finally underway by the first week of February.

“The industry is at around 60 per cent of full production now,” noted Jim Hansen of Grower Direct Marketing in early February. “Although we’re expecting some more cold weather over the next few days, the (volume) snowball is really rolling downhill now and it’s not going to stop.”

Hansen said the asparagus market has been experiencing strong prices for many months primarily due to weather issues in Peru. That may change with the start of the Caborca deal, however.

“Unlike Peru, where production is in the hands of several large entities, there are probably three times the number of shippers out of Caborca,” explained Hansen. “That fact makes it a difficult landscape to navigate because you suddenly have a range of quotes from many players instead of a relative few.”

Hansen added the market has already adjusted

Northern Mexico asparagus season should continue with strong volume well into April and possibly May with plenty of product for the Easter holiday demand. A lower. “If there is a positive aspect, it’s that prices are now at a level where retailers will start to promote.”

If the weather cooperates, the

Kenyan avocados continue search for new outlets

New markets are required for Kenya’s massive avocado production, including in East Asia, where competition with Australia is heating up.

by Tom Joyce @tomfruitnet

Kenya’s staggering growth in avocado production in recent years has meant that the country’s exporters are always on the lookout for new export markets. Avocado production in Kenya has doubled over the past five years, according to FAO statistics, making the country the world’s sixth biggest producer of avocados, with a planted area of 26,000ha and a volume of 417,000 tonnes in 2021. Last year, following years of negotiations, Kenya received the go-ahead to begin exports of avocados to India, with the first shipment taking place in September. The country has equally found new markets in

China and Mauritius, with talks still ongoing for the US and Korea markets.

“We are still looking for new customers, trying to reach new destinations,” says Anne Kavai, sales and marketing manager at Nairobi-based Keitt Exporters. “We have good coverage in Europe. We started out by exporting avocados and mangoes to the Middle East so we have a good presence in places like Dubai, Jeddah and Oman. But we would like to do more in East Asia.”

417,000 tonnes

Smallholder concern over Kenya Seed

Kenyan president William Ruto has faced protests over his plan to float dozens of stakes in state companies, including Kenya Seed, with critics warning of the potential risks to the nation’s food security and agricultural sustainability.

“Kenya Seed is a public entity that has been instrumental in ensuring smallholder farmers’ access to highquality, affordable seeds — a lifeline for agricultural productivity in the country,” read an editorial in Business Daily Africa. “The proposal to privatise raises grave concerns about the future of this essential service, threatening to disrupt the delicate equilibrium that sustains food production across the nation.”

Last season, Kenyan avocado exporters were affected in that market by the bumper crop from Australia. “There was strong competition from Australia in Singapore, Malaysia and Hong Kong,” says Kavai. “They increased their production a lot. It’s on us now to ensure we don’t lose the market.”

One of the challenges for most Kenyan exporters has been logistics, but this is moving in the right direction, according to Kavai. “The road network across Kenya is really improving,” she says. “Getting the product from the farms to the packhouse sometimes used to be a challenge. But now, not only is our new packhouse located on the farm, but the government has also invested heavily in roads. The Nairobi Expressway is one example.”

The company too has made investments. Its Kenol packhouse, a response to the rapid growth in avocado production, has been in operation since 2021. It stands as the largest avocado packhouse in East and sub-Saharan Africa, with a capacity of 1,500 tonnes per week. A

TOP—Avocado production continues to grow in Kenya

of avocados produced by kenya in 2021

California Avocado Commission predicts shorter crop

Volumes down on last season but delayed picking could see production spike.

by Bree Caggiati

BELOW TOP—California avocado volumes are expected to ramp up in March/April

BELOW BOTTOM—The CAC marketing team in a California avocado grove

The California Avocado Commission (CAC) has released its official crop forecast for the 2023/24 fiscal year and is anticipating a total of 94,347 tonnes, down from 107,501 tonnes the year prior.

According to the CAC, the potential for a wet winter may encourage some growers to delay picking to allow their avocados time to increase in size, which could in turn increase the crop volume towards the end of the season.

“Some very early season harvesting has occurred already and we’re anticipating the volume to ramp up in March and April,” says CAC vice president of marketing Terry Splane.

Most of the premium California avocado harvest will be the Hass variety. Of the other varieties, Lamb Hass is expected to contribute 2,721 tonnes, Gem 2,267 tonnes, with another 450 tonnes coming from other varieties commercially grown in California.

To support growers this season, the commission has teamed up with marketing agency Curious Plot to launch a consumer advertising campaign. The creative, which is currently in production, is centred on locally grown and sustainability messaging.

Additionally, CAC will introduce an expanded trade support programme, which incorporates retail and foodservice promotions including video content, social media and in-store merchandising.

“The commission is meeting with California avocado growers, handlers and customers now to plan the who, where and when for this season’s amplified trade programmes,” Splane says. A

@breefruitnet

Two lightsbright at the end of a dark tunnel

Tech startup Innoterra says it has identified a natural, microbial treatment and a mutation of Cavendish that can combat diseases like TR4 and sigatoka.

by Mike Knowles

@mikefruitnet

Two new solutions have emerged with the potential to stop devastating plant diseases in their tracks, a result that could revitalise the international banana trade.

That’s according to various people involved in a new venture called Innoterra, a startup first established in 2016.

With its roots in the Indian banana export business, today the company has expanded to the Philippines and China. Its mission: to use new technologies to create more sustainable supply chains.

And that investment in tech might be about to pay off in a big way.

The group claims to have identified two different answers to the banana industry’s biggest existential threat, plant disease. The first of these is a new, more resistant banana variety; and the second is a novel biofungicide made using naturally occurring microbes that can apparently prevent the spread of harmful fungal infections.

“Essentially, we have developed two tech solutions,” explains Anup Karwa, director of Innoterra’s research

LEFT & BOTTOM—

Photos supplied by Innoterra show banana plants before and after treatment with BanacXin

OPPOSITE—(from top) Anup Karwa, Roberto Barnett, and Lorenzo Marconato

department InnoScience. In recent years, it has worked to develop new, more resistant banana varieties as well as crop treatments that can protect fruit against diseases.

For banana producers and marketers around the world, the idea of not one but two lights at the end of an especially dark tunnel is a very bright prospect.

TWO-IN-ONE VACCINE

Called BanacXin, the new biofungicide is pitched as a ‘two-inone vaccine’ that can provide farmers a means to control both fusarium tropical race 4 (TR4) and black or yellow sigatoka.

During trials on plantations in India and the Philippines over the past seven years, the treatment was tested on various different pathogens that attack banana plants.

Now, with a provisional patent and various safety certifications in place, Innoterra’s task is to scale up the biofungicide’s production from its initial industrial form and make it more widely available.

“We are setting up the fermentation labs, research and development, and production centre,” Karwa reveals. “We have already produced more than 2,000 kg of product, which was shipped to the Philippines and then extensively evaluated by independent growers and third-party assessors.”

Roberto Barnett, a veteran of the Filipino banana industry who has worked for big corporations like Unifrutti Philippines and UGP, now heads up Innoterra’s production, quality and disease control departments.

For him, BanacXin is the “perfect” response to the most challenging banana diseases. That’s because it can be applied by injecting the plants, a method he says is more efficient and less costly for growers.

“Normally, everyone sprays against disease using aeroplanes,” he explains. “Or you control the fungus in the soil through irrigation systems. But these systems are very costly and only the big corporations can afford them. This new method of injection does less damage to the environment and to people.”

GREENER VARIETY

Barnett is also the person responsible for identifying Innogreen, a mutant variety of Cavendish banana that shows what is said to be remarkable resistance to the same diseases.

“Actually, this was not the first time I saw such a mutation,” he recalls. “But we didn’t pay so much attention before. This one grows very fast and has very good distribution and separation in its leaves, which is very important when you are spraying to control disease.”

Innogreen also appears to offer sweeter-tasing fruit. “In the Philippines, we plant highland bananas from 600 metres up to 1,000 metre elevation, and they go up to 24° Brix, which means they can be sold at a premium in Japan. Whereas for lowland bananas it’s only 17°,” Barnett notes. “This green variety goes up to 20° Brix in lowland, so it’s a very good, sweet banana.”

Will consumers notice that different in taste? Lorenzo Marconato, head of international operations at Innoterra, believes that’s unlikely. But at the same time, he argues the variety has certain advantages. “It’s going to be less costly than other new alternatives to standard Cavendish,” he predicts. “And it has the advantage of being in the mainstream of what consumers like. Most consumers won’t see the difference, but the ones that are more attentive might appreciate it being sweeter.” A

Where next for China’s thriving blueberry industry

by Colin Fain

The Chinese blueberry industry has been on a remarkable growth trajectory, defying conventional market trends and economic conditions. Michael Oates, managing director of Haygrove China, says the sector has been expanding at an “astounding” rate, despite China’s economic slowdown, with a demand increase of approximately 40 per cent yearon-year over the past five years – a stark contrast to the modest growth of many other major categories which have seen around 3-5 per cent year-on-year growth.

According to Huan Zhang, founder of Twinkle Star Berry, “the marketing efforts of companies like Driscoll’s and Joyvio have played a crucial role in boosting demand by educating Chinese consumers about the taste and health benefits of blueberries”. With more international players and breeding companies entering the Chinese blueberry market, he expects that further innovations and improvements will continue to drive growth.

Several key factors have driven this blueberry boom, including the emergence of major players like NPS, whose planted area has gone from zero in November 2020 to around 1,300ha within three years. New acreage and substantial capital investments have also played an important role.

“We’ve seen a scramble to plant blueberries, especially Southern Highbush varieties, for counterseasonal cropping in the January to May window, basically anywhere people can,” Oates says.

“But it’s an immature market and even if you are not an especially good grower and not equipped with particularly special – or in fact legal – varieties, the opportunity to achieve outsized profit compared to various other fresh produce categories is high. For example, you have people who have typically invested in tech or real estate, who effectively have seen a spreadsheet that says their return for substrate blueberries is higher than, let’s say, real estate. And so they’ve parked liquidity there.”

To address growing concerns about oversupply and economic uncertainty in mainland China, key distributors like Driscoll’s and Joyvio have begun

LEFT—Chinese demand is growing by 40 per cent year-on-year

exporting. Driscoll’s has started shipping blueberries and raspberries to South-East Asia, while Joyvio has utilised its regional supply chain to export products from its joint venture with Hortifrut. These export programmes serve as a hedge strategy to maintain premium pricing and explore new markets while addressing fears of oversupply in the Chinese market.

Zhang notes: “One noteworthy trend is the increase in fresh blueberry exports to South-East Asian markets. This development is linked to the growing demand for Chinese blueberries and the need to explore new markets beyond the domestic sphere. Peruvian blueberries make their debut in July, extending through January. During the summer, the Chinese market typically lacks high-quality blueberries. Peruvian blueberries become available in China around July or August, constituting a substantial portion of the imports.

“In addition to sourcing from Chile, China imports a limited

Source: Agronometrics Global Trade Data

Michael Oates and Huang Zhang share their insights on the future evolution of fresh blueberry cultivation in China.

Chinese exports of fresh blueberries by market (conventional)

airfreighted volume in the summer from the US, particularly from Washington and Oregon. This positions China as one of the largest importers of blueberries on the global stage.”

Despite its rapid growth, the Chinese blueberry industry faces several challenges. These include land zoning policies that prioritise staple crops over economically valuable ones, intellectual property theft leading to illegal propagation, climate change impacting crop management, and rising labour costs with limited incentive to invest in labour-saving capital and a longer payback period due to inability to own land.

“As home to 15 per cent of the world’s population but only 7 per cent of its arable land, China has prioritised food security over cash crops. A policy enacted since January 2020 restricts land usage, primarily reserving it for staple crops. This limitation has caused the cost of developing farms, including land compensation and extensive civil engineering work, to surge by 30-70 per cent,” says Oates.

In the fresh blueberry market, the dominant producing regions are primarily in Yunnan, Sichuan, and Guizhou, with Yunnan standing out due to its ability to produce counterseasonal blueberries. There is also some presence in northern regions like Anhui and Shandong, although the quality from these regions is not as high, making them less suitable for the premium fresh market.

“Yunnan stands out as a focal point for blueberry cultivation, thanks to its ideal climate for producing low-chill and no-chill blueberries. This region is especially significant because it can supply blueberries during China’s winter months when domestic production is limited, coinciding with the Chinese New Year,” says Zhang.

China’s blueberry market is more fragmented than other markets, with an abundance of branding

and packaging to differentiate products. Plus, there is no incentive for retailers to work with licensed legal growers, fostering illegal propagation and non-compliance with industry regulations.

It seems clear that the industry is poised for further growth and international collaboration. As it matures, players will have to adapt to navigate this changing landscape effectively. Zhang sees this as an opportunity to connect international and domestic companies and facilitate knowledge

sharing for the benefit of the entire industry. Oates anticipates increased competition and tighter profit margins, causing less efficient or skilled growers to exit.

The industry may also witness high-profile failures among companies that over-leverage themselves. Entry costs are rising, and returns are falling, prompting growers to contemplate increased capital investment to reduce labour reliance. China also faces a unique challenge due to the inability to own land, which necessitates a delicate balance between capital investment and labour dependence. Players will need to navigate these challenges effectively to continue reaping the rewards of the blueberry boom in China. As the industry matures, China is poised to remain a powerhouse in the global blueberry market. A

Price of Chinese fresh blueberry exports (conventional)

Source: Agronometrics Global Trade Data

China’s fresh blueberry import volume by country (conventional)

Source: Agronometrics Global Trade Data

Talking Heads: Steve Alaerts

Building and designing logistics solutions has provided Steve Alaerts with a vehicle to create meaningful connections with people in the international fresh produce business.

Can you give us an overview of your current position in the fresh produce business and your previous roles?

SA: I am a partner and director at Foodcareplus Logistics, a fresh produce and perishables logistics service provider in the Remant Transport Architects group. In April of this year, I will celebrate my 20th anniversary with Foodcareplus. In October 2023, I also joined the International Fresh Produce Association board, where I chair the supply chain committee.

How did you first get into the fresh produce business?

SA: When I joined Foodcareplus following a short career in the shipping line business and an inspiring trip to Australia, where I was introduced to fresh produce.

I started working on exporting Belgian topfruit.

What do you see as the biggest challenge facing the fresh produce business?

SA: The current model, where there is an unfair margin distribution in an already thin-margin industry, needs a review and must transform to a model where each stakeholder bringing value gets a fair portion. The logistics stakeholders in that chain play a critical role, and it is also in that particular field that we must innovate.

What is your proudest achievement in your work in the fresh produce business?

SA: Joining the efforts of the Belgian Fruit Valley team in opening the Chinese market for

Belgian conference pears more than a decade ago and the Indian market in 2009.

Describe your typical day-to-day schedule?

SA: After the excellent habit of a 20-minute breakfast with my spouse each morning, including fresh pressed juice, fresh fruit, and a coffee, I walk to our office for ten minutes listening to a news broadcast. At work, I start with my day planning by reviewing my agenda and then work on some current projects in close collaboration with my associate while managing the team.

Where have you travelled to lately in your job, and where are you planning to go next?

SA: I just returned from Fruit Logistica in Berlin and am already preparing for a trip to the US for two exciting projects this year. One of them is the introduction/revolution of celeriac in the US and Canada, a fascinating project we manage for a grower on the Belgian-Dutch border.

What do you love about your job, and what, if anything, would you change?

SA: I love building new connections and maintaining connections with people. Food is essential in personal and business lives. Food also connects people, and a network/community you have is one of the most valuable assets in life.

How much fresh produce do you consume, and where do you shop?

SA: At home, we eat fresh produce daily. I enjoy international cuisine but truly relax when I have my usual "Belgian" plate with cooked potatoes and freshly prepared vegetables. We buy fresh produce in supermarkets, but also on the wet market from time to time.

What do you do to unwind after a tough day at work?

SA: I go for a short run and then enjoy a good red wine, especially cold-climate wines. Afterward, I read an inspiring non-work-related story to take some distance from work.

What is the best piece of advice you’ve ever received?

SA: To listen with full attention to my peers, friends, and loved ones. A

Germany

Unica Fresh and Koppert take the top prizes at this year’s expanded Fruit Logistica Innovation Award.

Zucchiolo, the new vegetable product from Unica Fresh in Spain, has won this year’s Fruit Logistica Innovation Award.

Announced at a special awards ceremony on the final day of Fruit Logistica in Berlin, Zucchiolo was voted by visitors as the most innovative new fresh product in the business.

Consumed fresh or raw in a salad like a cucumber, Zucchiolo can also be cooked like a zucchini or an aubergine.

In addition, 50 per cent of the income generated from its sales are

allocated to social purposes, including the fight against cancer and degenerative diseases.

Other nominees in the category included Three Halves Avocado Fresh from Infuseo, Frutastic by Gautier Semences, Exceed Watermelon from Staay Food Group and Calypso Sweet Red Onions by Bedfordshire Growers.

The first ever Fruit Logistica Innovation Award Technology, a new prize highlighting the technological developments across the business, was won by Koppert’s Mirical release system, which improves application precision and reduces plastic by 99 per cent.

Koppert said significant improvements had been made to Mirical, its biological control solution for destructive whitefly in greenhouse vegetables. As a result, the predatory bug Macrolophus pygmaeus was better able to establish itself in the crop. A

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